Jefferies has revised its price target for EQB Inc (EQGPF, Financial), reducing it from C$126 to C$107 while maintaining a Buy rating on the stock. The investment firm has adjusted its forecast for 2025, anticipating a resumption of growth in Canadian financials by 2026. Despite the sector's historical resilience, Jefferies notes several short-term challenges, including uncertainties surrounding domestic elections and impending negotiations, which obscure the outlook.
The analyst highlights that although some risks have already been factored into current valuations, the potential for further downside remains. In response to these uncertainties, Jefferies has also lowered its estimates for other key players in the sector, specifically Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada.
