goeasy slides further after charge-offs, write-downs trigger sharp selloff

goeasy

12/03/2026 14:09

** Shares of non-prime consumer lender goeasy GSY.TO extend loss from previous sessions to fall 7.5% to C$37.6

** Stock slumped 16% on Wednesday after more than halving in value in Tuesday's session after co flagged charge-off of about C$178 million ($130.82 million)and write-downs tied to its LendCare unit

** "We view the development as unambiguously negative for the near-term financial outlook and a major blow to management credibility and investor sentiment," Scotiabank says

** Brokerage says path to full recovery is likely to take time, but adds that worst is now behind co

** "While obtaining covenant relief from lenders gives short-term reprieve, the path forward is challenged given ratings agencies are likely to downgrade the company's debt rating," analysts at RBC Capital Markets say

** Seven of 10 analysts rate stock "strong buy" or "buy" and three "hold"; their median PT is $66 - data compiled by LSEG

** Including session's move, GSY down 71% YTD

($1 = 1.3606 Canadian dollars)

 (Reporting by Pragyan Kalita in Bengaluru)

 ((Pragyan.Kalita@thomsonreuters.com;))