Jefferies has revised its outlook on Goeasy Ltd. (EHMEF, Financial), reducing the price target from C$222 to C$182 while maintaining a Buy rating. Analyst John Aiken noted that while the firm anticipates a resumption in growth for Canadian financials beginning in 2026, there are significant challenges in the near term.
The firm pointed to several uncertainties, such as the lack of any tariff resolutions, and the influence of potential domestic elections and negotiations, which contribute to an unclear future for the sector. Although Canadian financial institutions traditionally weather economic downturns better than some of their international counterparts, the present environment appears considerably unstable. Aiken warns that while some of the potential downside has already influenced stock prices, the adjustment is not yet complete.
In addition to revising Goeasy's outlook, Jefferies has also adjusted its forecasts and downgraded both CIBC and the National Bank of Canada, reflecting a broader concern about the immediate future of Canadian financials.
