12:49 PM EDT, 06/03/2024 (MT Newswires) -- National Bank has cut Laurentian Bank's target to $26 (from $27), and maintained its Underperform rating.

Laurentian reported Q2/24 core cash EPS of $0.90 vs. NBF $0.90 and consensus of $0.88.

Analyst Gabriel Dechaine writes that while Laurentian's results met expectations on an adjusted basis, the reported figure was the real focus. Laurentian announced $197 million in impairment and restructuring charges that are expected to yield $20 million of cost savings (90% of the charges were goodwill-related). Loan losses were also slightly above forecast and mitigated by a release in performing provisions, with GILs increasing 24% Q/Q.

Separately, Laurentian hosted an Investor Day, outlining medium-term objectives including double-digit ROE, double-digit EPS growth and a sub-60% NIX ratio. "We view these targets as ambitious," writes Dechaine.

Price: 25.19, Change: +0.24, Percent Change: +0.96