
TSE:EQB
This summary was created by AI, based on 10 opinions in the last 12 months.
Equitable Group (EQB-T) is garnering significant interest following its acquisition of President's Choice Financial, which could drastically expand its customer base and enhance profitability. Analysts note that EQB's digital banking model allows for lean operations and competitive rates compared to major Canadian banks, contributing to its faster growth. Despite being categorized as a higher risk due to its specialization and reliance on a niche market, experts generally perceive the valuation as reasonable at 12x forward PE with a modest dividend yield. While some experts caution against potential risks and prefer the stability of larger banks, the overall sentiment remains optimistic about EQB's ability to outperform the market in the coming years.
He thinks this mortgage lender has a dividend that is growing and trades at a low PE ratio. It is not a low risk company, as it makes loans to non-conventional borrowers. At this point in the market cycle, with high consumer debt, he would prefer to own a bank with larger market cap and higher liquidity. Yield 1.5%.
Mortgage financing when housing has cooled off. But EQB just announced they will relinquish some of their standby facilities that they took on during the Home Capital crisis last year--this will save them 25-cents a share in earnings next year and cost them a non-cash write-off. It boasts 5.5x earnings and a solid dividend. A potential for buybacks. This stock will be much higher in 2019. (Analysts' price target: $70.00)
(A Top Pick Jun. 26/17, Down 5%) They are now the largest in the industry. They are extremely well managed. They had record results and raised the dividend several times since he recommended it. It is trading below book value. It is a great value investment and is growing well despite the new mortgage rules. Customers wanting to take mortgages elsewhere are subject to the new stress tests.
Canadian Banks? He looks favourably on Canadian banks in general, because he likes the backdrop for energy. This is his favourite, and is actually the smallest of the group. Trades at the lowest valuation of the entire group. Trades at 1X Book compared to the National Bank (NA-T) at 2X. The Canadian bank trade should continue to drift higher.