
TSE:LB
This summary was created by AI, based on 4 opinions in the last 12 months.
Laurentian Bank (LB-T) has received a mix of opinions from various experts. Some express deep skepticism regarding the bank's future viability, indicating that the recent transaction may signify an end for the institution, with no competing bids anticipated. The bank trades at a low price-to-earnings ratio of 10.5x, revealing a significant discount compared to its peers, though this has not attracted buyers during its attempts to sell. Experts note that merger synergies could lead to substantial employee layoffs, exacerbating political and social issues. However, there are hopes that new management could enhance operational efficiencies and reduce costs, suggesting that while there are concerns, the future could hold potential improvements.
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)