01:34 PM EDT, 08/29/2024 (MT Newswires) -- National Bank has raised its target on EQB by $7 to $102 and kept its Sector Perform, after the company reported third quarter adjusted EPS of $2.96, beating National Bank's $2.94 and consensus $2.89.

Analyst Gabriel Dechaine notes that the third quarter beat was due to a top-line outperformance. However, spread income missed forecast due to a decline in mortgage loan balances. On credit performance, loan losses were also lower than expected on an adjusted basis. The quarter represented another period of weak credit performance in the equipment finance portfolio, namely in the trucking sector (i.e., generated 75% of impaired loan provisions).

"Looking ahead, we believe rate cuts stimulating the mortgage market and EQB likely nearing the end of its equipment finance credit issues set the bank up for stronger growth in fiscal 2025," Dechaine adds.

Price: 95.56, Change: -1.05, Percent Change: -1.09