Laurentian Bank (TSE:LB), a Montreal-based bank, announced yesterday that it’s conducting a strategic review aimed at maximizing value for stakeholders and shareholders. This caused the stock to soar by over 43% at its high today, reaching price levels not seen since 2018.
Cormark Securities subsequently upgraded the bank’s stock from “Market Perform” to “Buy,” hinting at potential acquisition interest from larger Canadian banks like the Bank of Nova Scotia (TSE:BNS) (NYSE:BNS) and the Canadian Imperial Bank of Commerce (TSE:CM) (NYSE:CM). This forms part of a broader trend among cash-rich Canadian banks leaning towards acquisitions for market share expansion.
The review, reportedly initiated after a bid from a rival bank and managed by JPMorgan Chase (NYSE:JPM), offers larger Canadian banks a unique expansion opportunity in Quebec. The bank assures a continued focus on customer service, deposits, and funding structure optimization throughout the review process.
Is Laurentian Bank Stock a Buy, According to Analysts?
According to analysts, Laurentian Bank earns a Hold consensus rating based on one Buy, four Holds, and one Sell assigned in the past three months. The average Laurentian Bank stock price target of C$39.54 implies 7.9% downside potential. However, more analyst upgrades may come in following the news.
