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Urban Market Focus Will Provide Future High-Quality Lending Opportunities

EQB
EQB
AnalystConsensusTarget
Not Invested
Published 30 Dec 2024

Update shared on29 Aug 2025

Fair value Decreased 6.02%
Previous
AnalystConsensusTarget's Fair Value
CA$106.20
15.2% undervalued intrinsic discount
29 Aug
CA$90.10
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1Y
-4.4%
7D
-11.1%

Analysts have reduced EQB’s price target to CA$106.20 due to concerns over slowing loan growth, rising expenses, and deposit challenges outweighing its strong capital position, resulting in a more cautious outlook.


Analyst Commentary


  • Analysts cite a slowdown in mortgage and loan growth as a risk to EQB's previous mid-teens growth expectations.
  • Rising expense base is leading to more cautious near-term outlooks from several analysts.
  • Benefits from a strong regulatory capital position are being overshadowed by concerns around weaker credit quality and challenges in deposit growth.
  • Price targets have seen modest downward adjustments, reflecting increased caution rather than a sharp deterioration in fundamentals.
  • The consensus rating has shifted towards "Sector Perform" or "Market Perform" as growth headwinds balance out ongoing core strengths.

What's in the News


  • EQB announced Chadwick Westlake will become CEO, succeeding the late Andrew Moor; Westlake is a former CFO of EQB with deep banking and leadership experience.
  • Marlene Lenarduzzi was appointed interim CEO following the sudden passing of CEO Andrew Moor; Lenarduzzi is the current Chief Risk Officer with extensive risk and banking strategy experience.
  • Anilisa Sainani will join EQB as Chief Financial Officer, bringing over 20 years of banking and finance experience, most recently at RBC.
  • EQB declared a Q3 dividend of $0.55 per common share, a 17% increase from the previous year's September dividend.

Valuation Changes


Summary of Valuation Changes for EQB

  • The Consensus Analyst Price Target has fallen from CA$113.00 to CA$106.20.
  • The Consensus Revenue Growth forecasts for EQB has significantly risen from 10.1% per annum to 12.9% per annum.
  • The Future P/E for EQB has significantly fallen from 9.49x to 8.34x.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.