12:47 PM EST, 12/05/2024 (MT Newswires) -- National Bank has trimmed its EQB target by $2 to $109 after the company reported a fourth-quarter adjusted EPS of $2.51 missing National Bank's $2.82 and consensus $2.89 forecasts.

For National Bank analyst Gabriel Dechaine, EQB's results were "a disappointment," due to weak credit performance, with adjusted PCLs exceeding his forecast by 65%. Once again, issues in the trucking sector were a primary driver of losses, with equipment finance loans contributing 50% to this quarter's PCL figure (and ~70% for the full year).

Dechaine believes the Street could be surprised by a 40 bps Q/Q drop of EQB's CET 1 ratio. At 14.3%, the bank remains well capitalized and may opt to pursue share buybacks, which Dechaine believes is implied by updated medium-term financial targets. "If there's a silver lining, it's that this quarter may represent the high watermark for losses in this portfolio."

Maintain Sector Perform.

Price: 102.84, Change: -6.61, Percent Change: -6.04