In a report released today, Matthew Lee from Canaccord Genuity maintained a Buy rating on Propel Holdings Inc (PRL – Research Report), with a price target of C$40.00.
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Matthew Lee has given his Buy rating due to a combination of factors that highlight the potential growth and financial health of Propel Holdings Inc. The recent acquisition of QuidMarket is seen as a significant growth driver, with expectations for meaningful contributions to loan book expansion and revenue. Propel’s core business is anticipated to benefit from typically strong Q4 performance driven by holiday demand, leading to increased revenue forecasts.
Credit performance is projected to remain robust, supported by favorable economic conditions such as a declining US unemployment rate. Additionally, exchange rate gains and a more favorable regulatory environment in the US are expected to further bolster Propel’s financial outlook. Despite a slight reduction in earnings estimates due to acquisition costs, Lee maintains a positive view on Propel’s long-term trajectory, underpinning the Buy rating with a target price that reflects strong earnings potential and growth expectations.
Lee covers the Financial sector, focusing on stocks such as Toronto Dominion Bank, Bank Of Montreal, and Bank Of Nova Scotia. According to TipRanks, Lee has an average return of 9.9% and a 53.37% success rate on recommended stocks.