Q: Hi 5i team,
Laurentian Bank 's report seems positive to my untrained eyes! Your opinion? Will this spur interested parties to the forefront for a buy out proposal?
Laurentian Bank 's report seems positive to my untrained eyes! Your opinion? Will this spur interested parties to the forefront for a buy out proposal?
5i Research Answer:
There was an undisclosed buyer of the company in 2023, with no official confirmation/disclosure. Earnings and revenue beat estimates, and we would consider it a good quarter overall. The stock is very cheap at 8.3X earnings, with a 7% dividend. Its small size adds risk, and we are not exactly entering a likely period of robust economic growth. We would prefer a larger bank here, and would not buy just on the possibility of a buyout.