BofA update shows where active managers are putting money
Investing.com - BMO Capital has reduced its price target on EQB Inc (TSX:EQB) (OTC:EQGPF) to C$100.00 from C$111.00 while maintaining a Market Perform rating on the stock.
The firm cited concerns about EQB’s growth trajectory as the company enters a new leadership phase, questioning how the company’s return on equity (ROE) profile would return to its historical 15% level.
BMO Capital raised additional questions about EQB’s ability to accelerate growth while simultaneously improving efficiency, as well as the company’s key diversification and expansion strategies.
The analyst report also questioned how capital would be allocated to support these strategies going forward, expressing uncertainty about the company’s direction.
BMO Capital’s Market Perform rating reflects its view that "EQB’s growth algorithm could be at risk over the foreseeable future, which limits visibility into returning to 15% ROE."
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