
TSE:LB
This summary was created by AI, based on 7 opinions in the last 12 months.
Experts have a generally negative outlook on Laurentian Bank (LB-T), indicating significant concerns about its viability and market position. The consensus is that the bank trades at a steep discount compared to its peers, having attempted to sell itself without success. This suggests a lack of confidence in its growth potential, compounded by the challenges faced by smaller banks in competing with larger institutions. While some see potential for improvement under new management, the overwhelming sentiment leans toward avoidance due to lower valuations and operational inefficiencies. Predictions of potential takeovers exist, but many believe that the current situation leaves the bank stuck without clear direction or future prospects.
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)