Q: is 5i still as keen on GoEasy going forward. The stock has not been behaving well.
5i Research Answer:
We are still positive on the company. GSY has adapted well to new regulations, and as one of the largest in the sector its smaller competitors are having a harder adjustment to interest rate caps. Growth may slow in a higher interest rate, recessionary environment, but we think the very low valuation already reflects a lot of this risk. We think it will be higher in a couple of years, perhaps significantly if rates fall and/or there is no recession.