02:29 PM EST, 12/06/2024 (MT Newswires) -- Laurentian Bank reported fourth quarter core cash EPS of $0.89 beating National Bank's $0.85 and consensus of $0.87.

Laurentian continues to face a challenging demand environment, with the CRE business sluggish as developers wait on the sidelines and the U.S. inventory finance business in a cyclical downturn, notes National Bank.

Revenues missed National's (and consensus') forecasts. However, the company is exploring partnerships for its inventory finance business (Northpoint), which could result in an acceleration of growth.

Lastly, LB's credit outlook improved, with loan losses coming in lower than forecast and management guiding to a high teens loss ratio for 2025 (i.e., versus the 17-23 bps 2024 guidance range).

Maintain Underperform. Target lifted to $27 (from $25).

Price: 30.31, Change: +1.29, Percent Change: +4.45