goeasy: Elevated Credit Losses, Rising Leverage and Limited Upside Justify Hold Rating Amid a Challenging 2026 Outlook

Analyst Etienne Ricard of BMO Capital maintained a Hold rating on goeasy, retaining the price target of C$45.00.

Etienne Ricard has given his Hold rating due to a combination of factors stemming from goeasy’s challenging near‑term outlook. The company faces a difficult 2026 as it works to preserve bank financing, reduce leverage, restructure operations, and manage elevated credit losses, all of which introduce material uncertainty into future earnings.

Ricard also highlights that leverage has moved above his comfort threshold and that charge‑offs are expected to remain unusually high before easing in 2027, leaving the deleveraging path unclear. While liquidity is sizable and management guides to loan growth resuming in the second half of 2026, the stock already trades around tangible book value, so upside appears limited relative to the risks, supporting a Hold rather than a more positive stance.