BMO Capital Markets sustained its positive stance on Goeasy Ltd (GSY:CN) (OTC: EHMEF), maintaining an Outperform rating and raising the firm's price target to Cdn$215.00 from the previous Cdn$208.00.
The analyst from BMO Capital Markets, on Thursday, expressed confidence in the consumer financial services company, citing an expected increase in the mid-point of its three-year loan receivables forecasts by approximately 3%. The revision is based on Goeasy's performance thus far, which has reportedly surpassed expectations.
Goeasy's steady credit performance and operational leverage were also highlighted as factors contributing to a robust earnings outlook. According to the analyst, these elements support the projection of high-teens earnings growth for the company leading up to the year 2026.
"Heading into Q2 reporting, we anticipate goeasy will raise the mid-point of its three-year loan receivables forecasts by ~3% considering better-than-expected growth year to date," said the analyst.
Goeasy provides non-prime leasing and lending services through easyhome and easyfinancial. easyhome offers lease-to-own furniture, appliances, and electronics, while easyfinancial provides personal and small business loans to individuals with less-than-perfect credit, helping them access financing and essential goods while building their credit.
InvestingPro Insights
BMO Capital Markets' positive outlook on Goeasy Ltd is further substantiated by several metrics and InvestingPro Tips that highlight the company's financial health and future potential. According to InvestingPro data, Goeasy Ltd boasts a solid market capitalization of $2.12 billion USD, indicating a strong presence in the market. Additionally, the company has demonstrated a commitment to returning value to shareholders with a notable dividend yield of 5.3%, and it has a history of maintaining dividend payments for 21 consecutive years, underscoring its financial stability.
Investors might also be interested in the company's recent performance metrics, which show a modest but positive one-week price total return of 0.07% and a more significant one-year price total return of 6.4%. These figures suggest a consistent upward trajectory for Goeasy Ltd's stock price, aligning with BMO Capital Markets' raised price target.
Furthermore, Goeasy Ltd is trading at a low price-to-earnings (P/E) ratio relative to near-term earnings growth, an InvestingPro Tip that signals potential value for investors considering the stock's growth prospects. This is complemented by the fact that analysts predict the company will be profitable this year, which could provide additional confidence to investors.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/GSY. Subscribers can access these tips and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering deeper insights into Goeasy Ltd's performance and future outlook.
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