On Thursday, Jefferies analysts began coverage of EQB Inc (TSX:EQB:CN) (OTC: EQGPF), assigning a Buy rating to the stock along with a price target of C$129.00. The firm expressed confidence in the company's growth trajectory and profitability over the medium and long term, despite recent challenges in credit.
EQB Inc, which operates under the EQ Bank brand, has been working to address certain credit issues. Jefferies analysts see these efforts as a significant opportunity for the bank. They believe that the company's current valuation does not fully reflect its potential for substantial growth.
The analysts' optimism is rooted in the belief that EQB's growth and profitability will remain strong moving forward. They suggest that the bank's current situation may offer an attractive entry point for investors looking for robust growth at a lower valuation.
The price target of C$129.00 set by Jefferies indicates their expectation for the stock's potential upside. The firm's initiation of coverage and positive outlook could influence investor sentiment towards EQB Inc.
As the market digests this new coverage, investors and stakeholders of EQB Inc will likely monitor the stock's performance to see if it aligns with Jefferies' expectations. The bank's future financial results and ability to overcome its recent credit challenges will be critical in determining whether it can achieve the growth and profitability forecasted by the analysts.
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