Tom Mackinnon, an analyst from BMO Capital, maintained the Hold rating on ECN Capital (ECN – Research Report). The associated price target is C$3.25.
Tom Mackinnon has given his Hold rating due to a combination of factors impacting ECN Capital’s performance. The company’s Q4/24 adjusted EPS fell short of expectations, missing both analyst and consensus estimates, as well as the company’s own guidance. This shortfall was attributed to deferred originations, which are expected to impact future earnings positively, yet the reliance on guidance and past instances of lowered guidance contribute to uncertainty.
Additionally, the manufactured home segment experienced a decline in originations, partly due to weather-related disruptions, which deferred revenue into the next fiscal period. Despite some positive developments, such as the growth in the Marine and RV segment, the overall financial performance was hindered by higher operational and interest costs. These mixed results, combined with uncertainties in execution and strategic changes, underpin Mackinnon’s decision to maintain a Hold rating, reflecting a cautious outlook on the stock’s near-term potential.
ECN’s price has also changed dramatically for the past six months – from C$2.200 to C$3.340, which is a 51.82% increase.