Propel Holdings Inc: Strong Financial Performance and Strategic Growth Justify Buy Rating

Canaccord Genuity analyst Matthew Lee maintained a Buy rating on Propel Holdings Inc (PRL – Research Report) today and set a price target of C$39.00.

Matthew Lee has given his Buy rating due to a combination of factors including Propel Holdings Inc’s strong financial performance and growth potential. The company reported a significant year-over-year revenue increase of 44%, reaching $138.9 million, which exceeded both the analyst’s and consensus estimates. This growth was driven by robust loan origination and the successful integration of QuidMarket, which contributed to higher yields.
Additionally, Propel’s provisions for credit losses were better than expected, with a PCL ratio of 42.2%, outperforming the forecasted 44.2%. The firm’s ability to maintain a strong loan book and improve its annualized yield to 115% further supports the positive outlook. The company’s strategic positioning in an underserved consumer market, combined with the ongoing expansion of its LAAS platform, suggests continued growth. Furthermore, the increase in annual dividends by 9% to C$0.72 reflects confidence in sustained profitability, justifying the Buy rating with a target price of C$39.00.