On Monday (NASDAQ:MNDY), BMO Capital Markets adjusted its outlook on shares of Goeasy Ltd (GSY:CN) (OTC: EHMEF), increasing the price target to Cdn$207.00 from the previous Cdn$202.00. The firm has maintained a Market Perform rating on the stock.
The adjustment follows Goeasy's third-quarter results, which the analyst noted were better than expected. The company exhibited sequential stability in net charge-offs and non-current loans, indicating a robust management of credit risk during a period marked by heightened economic uncertainty.
BMO Capital highlighted Goeasy's adept handling of the challenging macro-economic climate. The company's proactive tightening of underwriting standards and structural portfolio protections were cited as key factors contributing to its steady performance.
The analyst's maintained Market Perform rating reflects a viewpoint that Goeasy's stock presents a balanced risk-reward scenario. The rating suggests that while the company is managing well, the potential for significant stock appreciation or depreciation is moderate, given the current soft macro-economic conditions.
The stock price target increase to Cdn$207.00 is based on Goeasy's demonstrated resilience and strategic measures to safeguard its financial stability. This outlook by BMO Capital offers investors a perspective on the company's valuation in light of recent performance and economic trends.
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