Scotiabank upgrades Goeasy stock to Sector Outperform on attractive entry point

Published 16/10/2025, 14:20
Scotiabank upgrades Goeasy stock to Sector Outperform on attractive entry point

Investing.com - Scotiabank upgraded Goeasy Ltd (TSX:GSY) (OTC:EHMEF) from Sector Perform to Sector Outperform and set a price target of C$225.00.

The upgrade comes after Goeasy shares declined more than 20% following the publication of a short-seller report, which Scotiabank believes has created an attractive entry point for investors.

Scotiabank rejected the short report’s central claims that Goeasy uses "pretend and extend" practices to avoid reporting delinquencies and employs accounting approaches that delay reporting loan losses and other expenses.

The bank does not support the bearish view that delayed net charge-offs would likely drive a significant earnings miss for 2026 or that Goeasy is engaged in questionable practices.

Scotiabank identified the upcoming third-quarter 2025 results as the first potential catalyst for stock recovery, noting that demonstrating solid results with charge-off rates remaining within targeted range, declining late-stage delinquencies, and stabilizing interest receivable would be key to removing the valuation overhang.

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