30 Aug 2021 09:11 ET
09:11 AM EDT, 08/30/2021 (MT Newswires) -- Scotiabank raised its price target on Canadian Western Bank (CWB.TO) to $43 from $42 on Monday. Analyst Meny Grauman maintained a Sector Outperform rating on shares of Edmonton, Alberta-based bank following its third quarter results. Grauman said Canadian Western Bank continues to be an attractive post-pandemic recovery play, as its share price remains at a wide discount to peers despite improving company fundamentals, particularly loan growth. "These improving fundamentals were also a key feature of the bank's Q2 results, but the stock market reaction to that release was weighed down by the firm's plans to establish a $150 Million at-the-market (ATM) equity offering," the analyst said in a note to clients. "Although the ATM is clearly driving some dilution in the short run, the reality is that with spot loans growing at 9% year over year, CWB absolutely requires additional equity in order to fuel its rapidly accelerating organic growth," he said. |