Barclays Raise Target Barclays analyst John Aiken is expecting a “steady” first quarter of fiscal 2023 for Canadian banks.
“After a challenging 2022, a renewed risk-on sentiment has fueled an early FY23 outperformance for the banks,” he said in an earnings preview released on Monday. “The slew of BoC rate hikes remains supportive for margins, and a seasonally strong Q1 could see CMRev surprise to the upside. And, while credit should continue to normalize, expenses should ebb from a ‘kitchen sink.’”
Mr. Aiken made a series of target changes to stocks in the sector. They are:
- Bank of Montreal ( “overweight) to $146 from $147. The average on the Street is $142.63.
- Bank of Nova Scotia ( “equalweight”) to $84 from $85. Average: $77.72.
- Canadian Imperial Bank of Commerce ( “equalweight”) to $63 from $66. Average: $64.25.
- Canadian Western Bank (“overweight”) to $30 from $28. Average: $31.07.
- Definity Financial Corp. ( “overweight”) to $44 from $43. Average: $43.05.
- IGM Financial Corp. (“underweight”) to $39 from $38. Average: $45.50.
- Laurentian Bank of Commerce ( “equalweight”) to $36 from $37. Average: $40.54.
- Royal Bank of Canada ( “overweight”) to $150 from $151. Average: $141.71.
He maintained an “overweight” rating and $102 target for Toronto-Dominion Bank shares. The average on the Street is $101.63.