
TSE:LB
This summary was created by AI, based on 5 opinions in the last 12 months.
The sentiment surrounding Laurentian Bank (LB-T) is predominantly negative among the experts. Many believe that the recent transactions signal a troubling future for the bank, with one reviewer stating that the deal marks 'the end of the line.' The bank trades at a price-to-earnings ratio of 10.5x, significantly lower than its peers, suggesting that it might be undervalued. However, there is concern about the bank's viability, as it previously attempted to sell itself without attracting any buyers, heightening fears regarding its operational health and competitiveness against larger banks. Experts are wary of potential synergies from a merger which could lead to mass firings. Overall, the reviews indicate that investors should exercise caution.
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)