CIBC Capital Markets raised its price target on shares of two Canadian banks and lowered its target on three.
Analyst Paul Holden increased his target on Bank of Nova Scotia (BNS.TO) to C$137 from C$136 (neutral), and on Toronto-Dominion Bank (TD.TO) to C$188 from C$184 (neutral).
Holden reduced his target on Bank of Montreal (BMO.TO) to C$261 from C$272 (neutral), on National Bank of Canada (NA.TO) to C$242 from C$249 (outperformer), and on Royal Bank of Canada (RY.TO) to C$300 from C$311 (neutral).
"The banks produced another set of very strong results. Where there were shortfalls on specific key performance indicators (KPIs), even when small, the market was ready to gripe," the analyst said in a note to clients. "This is symptomatic of stretched valuation multiples."
"While we remain positive on the F2027 EPS outlook (forecasting 11% EPS growth), we remain cautious on the stocks," Holden said.
"A lot of the positives are already priced in, while not much of the downside is."
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