goeasy keeps “Buy” rating at Beacon Secuities

Despite missing earnings expectations for the first time in years, goeasy (goeasy Stock Quote, Chart, News, Analysts, Financials TSXV:GSY) still has a clear path to recovery, says Beacon Securities analyst Doug Cooper, who maintained his “Buy” rating and $300.00 price target in a May 13 note.

Shares of goeasy (GSY) have struggled since hitting a 52-week high of $206 in early 2025, following the departure of former CEO Jason Mullins. While Q1 results fell short of expectations, Cooper believes the worst is over.

“The shares are now down 29% since that time and underperforming other Canadian financials whose shares are up ~10% over the same time frame,” Cooper said. “While the weaker than expected Q1 results did not help, we believe earnings have bottomed and should start to show growth from here, aided by lower provisions, which will work to grow earnings strongly on a sequential basis.”

Dan Rees, who officially became CEO in March, is not planning any major shakeups but aims to fine-tune operations after a period of rapid growth.

“He noted that he has been very impressed with the credit team (critical in a lending business), and as such, investors should not expect material strategic changes but rather tweaks to shore up some growing pains (i.e. collections) that GSY has experienced during this period of exceptional organic growth (tripling loan book in 5 years),” Cooper said.

He expects goeasy to generate $688.1-million in adjusted EBITDA on $1.69-billion in revenue for fiscal 2025. He sees those figures rising to $817.5-million in EBITDA on $1.91-billion in revenue in 2026.

Despite the recent earnings miss, the long-term outlook remains strong, backed by a solid balance sheet, new product launches, and strong leadership.

“With the company having the infrastructure on which to grow, $2 billion of liquidity to fund that growth (as well as fund share buybacks), a growing portfolio of products including the soft launch of its credit card by year-end, a focus on cross-selling (another tweak noted by Mr. Rees), and minimal competition (helped in part by the government’s new rate cap), and a new CEO who has significant experience in managing large financial organizations, we believe the risk-return of GSY at current levels is exceptional,” Cooper said.

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