Scotiabank Upgrades EQB to Hold Amid Analyst Revisions

Scotiabank has upgraded the shares of EQB (TSE:EQB) to a “hold” rating, as outlined in a research report released on Monday. This decision reflects a broader trend among financial analysts, with several institutions recently revising their price targets for the company.

Royal Bank of Canada adjusted its price target for EQB from C$124.00 to C$112.00, maintaining an “outperform” rating in a report dated August 29, 2023. Similarly, TD Securities raised their target price from C$96.00 to C$103.00, while designating the stock with a “hold” rating on December 5, 2023. In contrast, National Bankshares lowered its price target from C$104.00 to C$89.00 and assigned a “sector perform” rating on August 28. Jefferies Financial Group also reduced its price target from C$107.00 to C$93.00 in a report published on November 25. Additionally, CIBC cut its price objective from C$126.00 to C$116.00, maintaining a “hold” rating as of August 29.

Currently, two analysts have issued a “buy” rating for EQB, while eight have opted for “hold,” leading to an average rating of “hold” and a consensus target price of C$101.78, according to MarketBeat.com.

Stock Performance and Financial Indicators

On Monday, EQB’s stock opened at C$103.81, reflecting a modest increase of 0.3%. The firm’s 50-day simple moving average stands at C$91.21, and its 200-day simple moving average is C$95.12. With a market capitalization of C$3.99 billion, EQB has a price-to-earnings (P/E) ratio of 15.61 and a price-to-earnings growth (PEG) ratio of 0.34. The company’s stock has reached a one-year low of C$83.93 and a high of C$114.22.

In its most recent quarterly earnings report, released on December 3, 2023, EQB reported earnings per share (EPS) of C$6.56. The company achieved a net margin of 13.04% and a return on equity of 8.52%. Analysts project that EQB will post EPS of approximately C$12.60 for the current fiscal year.

Dividend Announcement and Future Outlook

In addition to its stock performance, EQB recently announced an increase in its quarterly dividend. Shareholders of record on December 31, 2023, will receive a dividend of $0.57 per share, up from the previous $0.55. The ex-dividend date is set for December 15, 2023. This change translates to an annualized dividend of $2.28 and a dividend yield of 2.2%. The company’s dividend payout ratio (DPR) currently stands at 31.28%.

EQB, formerly known as Equitable Group Inc., operates on the Toronto Stock Exchange and serves over 360,000 Canadians through its subsidiary, Equitable Bank. The bank has established itself as the eighth largest independent Schedule I bank in Canada, focusing on driving meaningful change in the banking sector to enhance customer experiences. Recognized as one of Canada’s Top Employers, EQB attributes its success to its commitment to both employees and customers.

As the financial landscape evolves, EQB’s strategic moves and analyst ratings will be closely monitored by investors and industry observers alike.