Update shared on 07 Nov 2025
Fair value Decreased 7.09%Analysts have lowered their price target for goeasy from approximately $240 to $223, citing updated valuation inputs and market assessment in line with recent research.
Analyst Commentary
Bullish Takeaways
- Bullish analysts continue to express confidence in goeasy's growth prospects and maintain positive ratings despite the reduction in target price.
- Outperform ratings indicate that analysts expect the stock to deliver above-average returns relative to peers over the coming period.
- Ongoing business execution and resilience in core financial metrics are cited as supportive factors for maintaining optimistic outlooks.
- The revised target price, although lower, still suggests potential upside from current trading levels and reflects analysts' belief in future value creation.
Bearish Takeaways
- The reduction in price targets signals some caution regarding valuation levels, as recent market developments have been incorporated into analyst models.
- Analysts remain attentive to potential headwinds, such as changing economic conditions or rising credit risk, that could affect goeasy's near-term performance.
- There is ongoing scrutiny of growth sustainability in a competitive sector, which has led to more conservative adjustments in forward projections.
- Adjustments in valuation inputs and risk assessments have led to tempered expectations for immediate outperformance, despite a still-positive rating.
What's in the News
- Jehoshaphat Research issued a report stating it is short goeasy, alleging approximately $300 million worth of improperly delayed credit losses and unreported serious delinquencies on the company's balance sheet (Jehoshaphat Research).
- Felix Wu was appointed as Interim Chief Financial Officer, effective September 30, 2025, following the planned departure of Hal Khouri after the third quarter reporting in November 2025.
- Hal Khouri, who has served as CFO since 2019 and played a key role in goeasy's financial strategy and capital markets execution, will leave the company later this year to pursue a new opportunity outside of Canada.
Valuation Changes
- Consensus Analyst Price Target: Lowered from CA$240.33 to CA$223.30, reflecting a revised market outlook.
- Discount Rate: Decreased moderately from 8.08% to 7.97%, indicating a slightly lower risk assessment in the valuation model.
- Revenue Growth: Projected to rise marginally, with updated estimates increasing from 48.75% to 49.86%.
- Net Profit Margin: Expected to improve slightly, moving up from 17.84% to 18.56% in forward projections.
- Future P/E: Lowered from 8.92x to 7.74x. This suggests analysts expect stronger earnings relative to price in updated forecasts.
Disclaimer
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