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Propel Holdings Maintained at Buy at Stifel Canada After Q1 Results; Price Target Kept at C$32.00

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-- Stifel Canada on Tuesday reiterated its buy rating on the shares of Propel Holdings (PRL.TO) and its C$32.00 price target following the company's first-quarter results.

"Propel reported an upside FQ1, underscoring strength in loan growth alongside stable credit performance, on the back of the rebound in credit quality and subsequent new origination activity we saw exiting last quarter. Importantly, credit metrics PCLs and net-charge-offs normalized this quarter, supporting a recovery in ROE and fueling yet another bump in Propel's quarterly dividend (11th consecutive raise at +6.7% to $0.24/share). Net/net - results further reinforce resilience in the non-prime consumer backdrop, in-line with recent prints from US consumer credit peers. FY guide is being maintained, reaffirming the growth trajectory ahead, while suggesting some conservatism amidst the current macro uncertainty. Conference call tomorrow at 8:30am ET (dial-in: 1-888-699-1199/webcast). Our key focus on the call will be around (1) outlook for US consumer credit quality, (2) growth outlook for LaaS, (3) pace/scale of ongoing growth investments to support US expansion/Propel Bank launch," analyst Suthan Sukumar wrote.

(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

Price: $24.15, Change: $+2.25, Percent Change: +10.27%

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