Update shared on 21 Nov 2025
Fair value Decreased 6.45%Analysts have lowered their price targets on goeasy, with recent adjustments reflecting a decrease from previous estimates, such as from C$194 to C$156 and C$265 to C$245. These changes cite modest downward revisions to growth and profitability assumptions in their updated outlooks.
Analyst Commentary
Recent analyst updates on goeasy highlight both opportunities and concerns impacting the company's valuation, growth prospects, and execution capabilities.
Bullish Takeaways
- Bullish analysts continue to maintain positive ratings on goeasy, underscoring enduring confidence in the company's business fundamentals and long-term performance.
- There is recognition of goeasy's resilience. Analysts believe the firm can navigate market headwinds while maintaining its core profitability over the medium term.
- Growth potential remains, with expectations pointing to the company's ability to adapt and scale in response to evolving market dynamics despite recent revisions.
- Outperform ratings illustrate an expectation that goeasy can exceed broader market returns if current execution remains steady.
Bearish Takeaways
- Bearish analysts cite concerns about the sustainability of prior growth and profitability assumptions. This has led to recent reductions in price targets.
- There is caution regarding near-term earnings prospects, as adjustments reflect tempered expectations for goeasy's financial outlook.
- Broader market trends and competitive pressures raise questions about the company's ability to achieve previous levels of execution and expansion.
- The current environment introduces greater uncertainty around valuation. This prompts a more conservative approach to future forecasts.
What's in the News
- Jehoshaphat Research issued a note taking a short position on goeasy, alleging approximately $300 million in improperly delayed credit losses and unreported serious delinquencies on the company's balance sheet (Jehoshaphat Research).
- goeasy Ltd. has appointed Felix Wu as Interim Chief Financial Officer, effective September 30, 2025. Wu brings over 20 years of experience in financial services, including previous roles as CFO at KOHO and President's Choice Financial, as well as Chief Risk Officer and CFO at Capital One Canada (Key Developments).
- Current CFO Hal Khouri is set to depart goeasy after the completion of third quarter reporting in November 2025. He has played a key role in the company’s financial strategy and capital markets execution since 2019. A comprehensive search is underway for his permanent successor (Key Developments).
Valuation Changes
- Fair Value: Declined from CA$223.30 to CA$208.90. This reflects a more cautious outlook on goeasy's intrinsic worth.
- Discount Rate: Marginally reduced from 7.97% to 7.95%. This indicates little change in the risk premium applied in valuation models.
- Revenue Growth: Narrowed slightly, with projected growth decreasing from 49.86% to 49.15%.
- Net Profit Margin: Edged down from 18.56% to 18.37%, suggesting more conservative profitability expectations.
- Future P/E: Lowered from 7.74x to 7.41x. This implies some compression in anticipated future earnings multiples.
Disclaimer
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