Goeasy Ltd. (GSY:TSX) emerged as one of the top gainers on the Toronto Stock Exchange this week, with shares rising over 16% following a dramatic 57% plunge in early March triggered by unexpected loan losses of approximately $178 million. Despite the rebound, analysts remain cautious about the stock's outlook.
Analyst Perspectives on Goeasy
Scotia Capital Markets analyst Phil Hardie maintained a price target of $39 on Goeasy, a significant reduction from his $210 target in late February. Shares closed Friday at $34.95. Hardie noted that "investor sentiment remains unforgiving amid lingering uncertainty and what we view as stacked risks." He emphasized that the gap between the stock price and fundamentals will persist until investors receive more clarity on loan-loss reserves.
Raymond James analyst Stephen Boland set a price target of $42, acknowledging some improvement in credit conditions but stating, "we remain cautious until a longer trend develops." The consensus 12-month price target based on 10 analysts is $39.90, according to Bloomberg.
RBC Canadian Industrials Conference Takeaways
RBC Capital Markets hosted a three-day conference in Toronto starting May 19, featuring 38 Canadian companies. Key themes included tariff and trade policy uncertainty, infrastructure and defense opportunities, improving freight transportation outlook, AI and technology in operational efficiencies, and disciplined capital allocation.
In aerospace and defense, analysts identified "defence spending and Canadian government investment emerge as a common tailwind" for Bombardier Inc., Chorus Aviation Inc., and Exchange Income Corp. For construction and engineering, strong growth outlook was noted for Aecon Group Inc., AtkinsRealis Group Inc., Stantec Inc., WSP Global Inc., and Toromont Industries Ltd. In freight, demand was described as "stable but uneven," with rail prices rising at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd., supported by a record grain harvest. Cargojet Inc. was flagged for "steady and solid growth."
Agnico Eagle's Arctic Gold Project
Agnico Eagle Mines Ltd. announced on May 20 its decision to proceed with constructing a large gold mine in Canada's Arctic, with initial capital costs of about US$2.4 billion. The federal government has deemed the project critical for regional economic development.
National Bank of Canada Capital Markets analyst Shane Nagle maintained an outperform rating and a price target of $350, citing the company's "low-risk" project portfolio in operational, political, and financial terms. Shares closed Friday at $242.94. TD Cowen analyst Steven Green also set a price target of $350, stating that "the development plan by (Agnico's) experienced Nunavut team is highly credible." Agnico Eagle acquired the Hope Bay site in 2021 for US$361 million, and TD now estimates its value at US$2.8 billion, including increased gold value. The consensus 12-month price target based on 18 analysts is $364.78, according to Bloomberg.
