BMO Capital analyst Sohrab Movahedi maintained a Hold rating on Bank Of Nova Scotia (BNS – Research Report) yesterday and set a price target of C$79.00.
Sohrab Movahedi has given his Hold rating due to a combination of factors that reflect both strengths and challenges for the Bank of Nova Scotia. The bank reported a strong performance in its Global Banking & Markets and International Banking segments, with a notable increase in trading revenue and better-than-expected earnings. However, the Canadian Banking segment underperformed due to higher credit provisions and lower risk-adjusted margins, which tempered the overall positive results.
Despite a strong capital position and a CET1 ratio of 12.9%, the bank faces uncertainties related to potential tariffs, which have led to a cautious outlook. The bank’s peer-leading dividend yield remains attractive to income-focused investors, but the revised strategy to focus more on developed markets over developing ones suggests a more conservative growth approach. These mixed factors contribute to the Hold rating, as the bank’s strengths are balanced by potential risks and strategic shifts.
According to TipRanks, Movahedi is a 4-star analyst with an average return of 8.7% and a 56.90% success rate. Movahedi covers the Financial sector, focusing on stocks such as Royal Bank Of Canada, Bank Of Nova Scotia, and Toronto Dominion Bank.
In another report released today, Barclays also maintained a Hold rating on the stock with a C$81.00 price target.