TD Cowen thinks Propel Holdings is undervalued

TD Cowen analyst Graham Ryding maintained his “Buy” rating and $37.00 target on Propel Holdings (Propel Holdings Stock Quote, Chart, News, Analysts, Financials TSX:PRL).

As reported by the Globe and Mail, Ryding said he expects continued growth from Propel’s lending-as-a-service and MoneyKey Bank Service programs, which represented 28% of total revenue in Q2 2026, up from a historical average of 20%.

“We expect this capital-lighter revenue mix shift to continue, pushing the revenue yield higher,” Ryding said.

The analyst believes that benefit is partly offset by a slightly higher outlook for credit provisioning, expense growth and interest expense.

Propel is scheduled to report Q3 2026 results after the market closes on Nov. 3, followed by a conference call before the open on Nov. 4.

In Q2, Propel reported revenue of US$179.6-million, up 26% year-over-year, and Adjusted EBITDA of US$43.7-million, up 24%. Net income rose 7% to US$16.2-million, while adjusted net income increased 29% to US$24.8-million.

Loans and advances receivable rose 21% to US$492.3-million, while ending combined loan and advance balances increased 23% to US$639.1-million.

The company also raised its annualized dividend to $1.02 per share from 96 cents, its 12th consecutive quarterly dividend increase.

CEO Clive Kinross said Propel delivered record revenue, ending combined loan and advance balances, Adjusted EBITDA and adjusted net income in Q2.

He noted that new customer originations increased 43% year-over-year across the platform, including lending-as-a-service, while credit performance remained stable.

Propel also ranked No. 164 on the 2026 Report on Business list of Canada’s Top Growing Companies, with three-year revenue growth of 160%.

Kinross pointed out that net income rose 294% and adjusted net income increased 227% from 2022 to 2025.

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