Analysts' reaction to Q3 results
1 hour ago by MT Newswires
08:32 AM EDT, 08/24/2021 (MT Newswires) -- Analysts had mixed reactions to Bank of Nova Scotia's (BNS.TO) third quarter results on Tuesday.
Mario Mendonca at TD Securities said Scotiabank's earnings were slightly negative relative to his pre-tax pre-provisions estimate.
The bank's adjusted cash earnings per share were $2.01 (a 93% year-over-year increase), compared to Mendonca's $2.08 forecast and consensus of $1.90.
The analyst maintained a Buy rating and $90 price target on Scotiabank shares.
CIBC World Markets analyst Paul Holden said the results were neutral, with Scotiabank's EPS beat mostly due to lower provisions for credit losses. He said international banking showed improvement in the quarter.
"The major drivers of the positive variances to our estimates were fee-based income, and lower PCLs," Holden said in a note to clients. "Negative variances were core net interest income, fixed expenses and gains on investment securities."
Holden maintained an Outperform rating and $90 price target on Scotiabank shares.
Barclays analyst John Aiken said Scotiabank's headline earnings number will likely get most of the attention and could generate a positive market reaction initially.
"Growth in domestic and wealth were strong and, while Scotia is just under its target for International, much of this is attributed to reversals on allowances, with revenue growth (and lending) weak," Aiken said in a note to clients. "Consequently, we believe that the lingering concerns regarding growth in the segment are likely to remain coming out of the quarter."
Aiken maintained an Equal Weight rating and $87 price target on the stock.
1 hour ago by MT Newswires
08:32 AM EDT, 08/24/2021 (MT Newswires) -- Analysts had mixed reactions to Bank of Nova Scotia's (BNS.TO) third quarter results on Tuesday.
Mario Mendonca at TD Securities said Scotiabank's earnings were slightly negative relative to his pre-tax pre-provisions estimate.
The bank's adjusted cash earnings per share were $2.01 (a 93% year-over-year increase), compared to Mendonca's $2.08 forecast and consensus of $1.90.
The analyst maintained a Buy rating and $90 price target on Scotiabank shares.
CIBC World Markets analyst Paul Holden said the results were neutral, with Scotiabank's EPS beat mostly due to lower provisions for credit losses. He said international banking showed improvement in the quarter.
"The major drivers of the positive variances to our estimates were fee-based income, and lower PCLs," Holden said in a note to clients. "Negative variances were core net interest income, fixed expenses and gains on investment securities."
Holden maintained an Outperform rating and $90 price target on Scotiabank shares.
Barclays analyst John Aiken said Scotiabank's headline earnings number will likely get most of the attention and could generate a positive market reaction initially.
"Growth in domestic and wealth were strong and, while Scotia is just under its target for International, much of this is attributed to reversals on allowances, with revenue growth (and lending) weak," Aiken said in a note to clients. "Consequently, we believe that the lingering concerns regarding growth in the segment are likely to remain coming out of the quarter."
Aiken maintained an Equal Weight rating and $87 price target on the stock.