TD Securities lowered its price target on EQB Inc. (EQB.TO) to $123 from $132 on Thursday.
Analyst Mario Mendonca maintained a Buy rating on shares of the Canadian digital financial services company following its Q2 results.
"EPS beat consensus by $0.05 (lower by $0.05 vs. our estimate) on much better operating leverage," Mendonca said in a note to clients. "However, the credit picture deteriorated. PCLs were up 16% q/q."
"We think investors will focus on impaired PCLs and sizeable adjustments to operating expenses," the analyst said.
"We like EQB on strong buying activity (buybacks/Loblaw) & PC deal, but acknowledge that credit and loan growth are an issue."
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