May 30, 2018 / 2:51 PM / 3 months ago

BUZZ-Laurentian Bank of Canada: Falls on mortgage loan repurchases

** Canadian bank’s shares down 5.7 pct at C$45.04; Touches more than 2-yr low

** Company says during Q2 audit, Canada Mortgage and Housing Corp (CMHC) identified mortgage loans that did not meet CMHC’s insurance eligibility criteria

** As a result, LB may need to buy C$125 mln-C$150 mln of the ineligible loans

** Barclays cuts PT by C$8 to C$47, CIBC downgrades stock to “underperform” and cuts PT by C$6 to C$49

** “We believe the incremental repurchases ... likely represents a notional disappointment to the market” - Joseph Ng, Barclays analyst

** More than 369,289 shares traded, 1.9x 30-day moving avg

** 4 of 10 brokerages rate the stock “buy” or higher, 5 “hold” and 1 “sell”; Median PT $55

** Up to Tuesday’s close, stock had fallen 20.5 pct YTD (Reporting by Laharee Chatterjee in Bengaluru)

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