
TSE:LB
This summary was created by AI, based on 3 opinions in the last 12 months.
The reviews on Laurentian Bank (LB-T) depict a rather bleak outlook, with experts expressing a lack of confidence in its future. One analyst notes that prior to recent transactions, they would not have considered investing in the bank, labeling the latest deal as potentially detrimental. The bank trades at a price-to-earnings ratio of 10.5, which is considerably lower than its peers, yet it appears to be stuck in a competitive quagmire against larger banks that continue to expand. Furthermore, the bank has previously attempted to sell itself without attracting buyers, raising concerns about its market viability. Overall, the sentiments suggest that without substantial strategic changes, Laurentian Bank may struggle to improve its standing.
They don't have enough focus in their strategy. EQ or GoEasy are better in this challenger-bank space or even the bigger banks. He wouldn't buy any bank now, though. Credit is the issue--if we enter a recession, consumers and businesses will spend less, be less activity. Banks need to take more credit-loss provisions before you buy them. We're getting there; big bank shares have declined 20% YOY.
Upside potential is better than all the big banks, due in part to valuation, size and growth opportunities in a recovery.
But we would see the risk as also significantly higher.
A smaller bank simply has less ability to withstand losses, and has few revenue drivers and funding options.
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Quality defensive. Huge upside potential. Trading at a valuation that's tied for its all-time low. New CEO dedicated to improving profitability. If you don't buy it at these lows, when are you going to? Partially re-hiked dividend after previous cut. Yield is 5.75%.
(Analysts’ price target is $39.40)