EQB Inc. (EQB.TO) was upgraded to Outperform from Market Perform at BMO Capital Markets on Tuesday.
Analyst Etienne Ricard raised his price target on shares of the Canadian digital financial services company to $130 from $108.
"The acquisition of PC Financial is strategically enhancing insofar as it provides EQB with an expanded customer outreach and a more diversified bank from asset, funding, and revenue perspectives," Ricard said in a note to clients.
"Further, there is upside from potential cross-selling synergies that would be supportive of a more loyal customer base and additive to forecasts," the analyst said.
"With improving confidence into returning to 15% ROE, the risk-reward appears favourable," Ricard said.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 105.09, Change: +3.09, Percent Change: +3.03
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