TSE:LB

Laurentian Bank (LB.TO)

40.31
-0.05 (0.12%)
as of Jun 4, 2026, 7:51:32 pm Market Open.
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Investor Insights
star iconJun 4, 2026, 12:00 am

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.

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Consensus
Avoid
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Valuation
Undervalued
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Similar
BNS
COMMENT
LB vs. NB He prefers NB. LB is a lot smaller. You're comparing a regional bank vs. a full-service bank. NB participates in national markets and exposure to business banking.
BUY
The juicy dividend sticks out. He thinks it is safe, but you have to be able to stomach some volatility. Their business lines are concentrated on the Canadian consumer, vs. BNS-T, which is international. The dividend is safe but it could have a 20% correction from here. It is not a screaming buy although the yield is tough to replace.
WEAK BUY
LB hasn't followed the big Canadian banks. It's been sideways for many years. It's been a definite downtrend since late 2017. Recently, it looks like it's breaking the downtrend, which is positive. Now, the chart looks good. He's okay with it.
BUY ON WEAKNESS
If he was going to buy a bank it would be this. He's seeking dividend companies. He bought it in December at $39.56 with a 6.6% dividend. It has a good chance of rising above $50 again. Since then, he has bought more. But he wouldn't buy--or sell--it at today's price, though.
PAST TOP PICK
(A Top Pick Mar 26/18, Down 1%) He bottom-picked this, but LB didn't produce the upside he expected. They've had trouble cutting labour costs. But he's confident they'll resolve this and continue to digitize their branches. Pays a good dividend. You may need to sit on this longer. He reduce his shares, but still owns it.
DON'T BUY
Smaller-tier Canadian bank. Don't fool around, own one of the top-quality banks instead. Declining loan growth, issues with mortgages, which impacted the balance sheet, and it's in the penalty box. Earnings are not growing at the moment. Sell, and buy National or TD or any of the others.
DON'T BUY
It is a much more domestic bank. The yield is higher than CM-T and banks don’t typically cut their yields. The problem is if this company can grow. You are buying this purely for the income. Are there better growth opportunities elsewhere? The yield is good.
BUY
Really cheap. In the last 20-25 years of history for that he has for this company only a couple of times it's been at this level. And subsequently it did very well. Best yield of the banks. What is not to like about it?
DON'T BUY
It is the only bank in North America with a unionized work force (37% of it). They are trying to come to an agreement so they can have more online services to customers. The other banks that are non-unionized have more flexibility. The valuation is cheap but so is CM-T. You could own LB-T but he prefers the other ones.
STRONG BUY
He likes this as a Top Pick. It resides in Quebec, the province with the strongest economy and where real estate value is still rising. (Analysts’ price target is $44.22)
TOP PICK
A good quality stock in a strong growing province. A good long term hold. Yield 6.5%. (Analysts’ price target is $44.22)
DON'T BUY
Not fond of it. His worry is the lack of regional diversity. (It's based in Quebec.) They also lack a wealth management business. They stumbled last year when they suffered a scandal over mortgage underwriting that rattled investor confidence.
DON'T BUY
He's shorting it. It's too expensive vs. peers. It pays a good yield and has a good payout ratio. But he prefers CIBC and other peers.
HOLD
They have had disclosure issues on some mortgages and the share price has been under pressure as a result. He prefers the larger premium banks. They have a reasonable yield and multiples.
BUY

National Bank vs. Laurentian Bank Laurentian, because their mortgage debacle has dragged down the stock until it's the cheapest Canadian bank. National isn't trading as much at a discount as its peers, and it has the biggest exposure to Canadian oil, which is a red flag.

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