The Globe and Mail reports in its Friday, Oct. 17, edition, that Scotia Capital analyst Phil Hardie has upgraded goeasy to "sector outperform" from "sector perform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Hardie continues to target the shares at $225. Analysts on average target the shares at $234.70. Mr. Hardie believes the recent sell-off in goeasy shares has improved the stock's risk/reward profile, creating an attractive entry point. Mr. Hardie says in a note: "The stock is now nearing what we expect to be solid support levels. We believe the central theme of the short report follows a well-worn path for short-sellers that target lenders during transitioning economies. The author alleges that goeasy uses 'pretend and extend' practices to avoid reporting delinquencies and uses accounting approaches that delay reporting of loan losses and other expenses. We don't buy into the report's bearish view that delayed net-charge-offs are likely to drive a significant earnings miss for 2026, or that goeasy is engaged in questionable practices. We think the key to removing the valuation overhang will be to demonstrate solid results with the charge-off rate remaining within targeted range."
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