RBC Capital Cuts Equitable Group Price Target By ~6%

RBC Capital analyst Geoffrey Kwan lowered the price target for Equitable Group Inc. EQB EQGPF to C$80 from C$85.
The analyst maintained the Outperform rating on the shares.
Kwan stated that 1Q22 EPS was better than their forecast and consensus.
According to the analyst, EQB continues to achieve solid financial outcomes. However, with the housing and mortgage markets weakening, the analyst believes sector valuations will be driven by sentiment rather than fundamentals in the short term.
Kwan believes EQB has a very solid track record of growth and profitability, and given his expectation that mortgage loan growth would decrease, a housing downturn with significant mortgage losses is unlikely.
Also read: EQ Bank Raises Interest Rate On US Dollar Accounts By 25bps.
Price Action: EQB shares are trading higher by 1.23% at C$56.19 on TSX, and EQGPF is higher by 0.59% at $42.85 on the last check Thursday.

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