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

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)