Q: Hello, Laurentian Bank has been quite positive lately , just wondering if you have heard rumours of any potential suitors.
Thank you
Carlo
Thank you
Carlo
5i Research Answer:
LB traded sideways for the past year, with a nice level of support around $24, and after its recent earnings it popped higher to $30. To help confirm an uptrend, we would like to see it rise above $32. We do not see any news regarding a potential sale, but it trades at a decent valuation of 9.5X forward earnings, and some major banks raised their price targets on the name following its recent results. Given the negative momentum and slow growth, we would prefer assessing this one from the sidelines.