9 stories mentioning GSY.TO
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goeasy Target Cut To C$34 From $38, Keeps Sector Perform at National Bank As "Uncertainty Remains Elevated" After Q1
goeasy's (GSY.TO) first-quarter adjusted loss narrowed but missed estimates, the company said after trade on Tuesday.The alternative lender said its adjusted loss, which excludes most one-time items, narrowed to $31.3 million, or $1.90 per adjusted diluted share, from $59.4 million, or $3.43, in the prior year period. The result missed he consensus estimate of a loss of $1.43 per share, according to FactSet.goeasy's consumer loan portfolio grew 2% to $412.9 million from the previous $404.9 million, beating the $400.6 million expected.Loan originations fell 19% to $551.3 million, driven primarily by a fall in merchant-originated automotive and powersports loan originations. goeasy implemented tighter credit underwriting measures due to unfavorable credit performance in those portfolios.In its second quarter outlook, goeasy expects gross consumer loans receivable at period end to range between $4.9 billion to $5.1 billion.The board also approved the adoption of a shareholder rights plan today."We continued to advance our six-point action plan in the first quarter, with cost efficiency measures already taking effect," said Patrick Ens, chief executive officer. "In March, we took decisive action to significantly reduce our exposure to merchant-originated loans. Our ending loan book size, total yield, and net charge off rate came in as expected. Our direct-to-consumer business remains strong, and with $560.1 million cash provided by operations before net principal written in the quarter, our liquidity position is solid as we manage through this transitional period."goeasy shares closed up $0.19 to $30.99 on the Toronto Stock Exchange,
RBC Capital Markets expects "resilient" first-quarter results from the property and casualty (P&C) insurance sector, but does not believes the results will be enough to change currently subdued investor sentiment on the sector.Analyst Bart Dziarski raised his price target on Fairfax Financial (FFH.TO) to US$2,261.00 from US$2,234.00 primarily reflecting the Poseidon transaction, and maintained an outperform rating. He believes the current valuation does not reflect the positive momentum in Fairfax's underwriting operations and investment portfolio."We expect Fairfax's underwriting results to remain strong in a favourable (albeit slowing) pricing environment where Fairfax has a historical track record of opportunistic growth. Fairfax's investment portfolio has been re-positioned to take advantage of the current interest rate environment driving improving investment results which we expect to continue," he wrote. Dziarski expects the P/B valuation discount vs. peers to narrow as Fairfax continues to consistently deliver solid operating results.As for the diversified financials sector, Dziarski remains cautious on goeasy (GSY.TO) and will look for updates on goeasy remediating issues within the LendCare portfolio, both regarding internal controls/financial reporting and charge-offs/loan losses. "We believe resolution of the foregoing is important for sentiment to improve."He is maintaining an underperform rating and $33.00 price target on goeasy. Dziarski does not expect management's 3-point action plan to take hold until 2028+ and sees downside risk to valuation as investors reassess the durability of book value and the company's ability to stabilize credit performance.Price: $2482.26, Change: $+25.42, Percent Change: +1.03%