Q: hi,
today BMO Nesbitt burns analyst Etienne Ricard downgraded EQB. can you comment on the report thesis, and give your thoughts on whether it is a buy, sell or hold today?
cheers, Chris
today BMO Nesbitt burns analyst Etienne Ricard downgraded EQB. can you comment on the report thesis, and give your thoughts on whether it is a buy, sell or hold today?
cheers, Chris
5i Research Answer:
The report cites that growth could be at risk from weaker loan growth, credit challenges and slow EQ Bank deposit growth. These are, of course, assumptions and could be well off. There are risks, but we think the low 9X valuation reflects these. Also, shares are being accumulated by Smith Financial, a well-known financial entity. Thus, EQB could be a target. We like it, for the small cap financial sector, and would view it as a BUY. Bay Street is at 6 BUYS and 4 HOLDS right now.