RE: Scotia Capital Target Raised to $49The quarterly results are not nearly as exciting when you back out the 11.4 MM mark-to-market to gain (partially offset by a 3.9 MM hedge loss). The year to date mark-to-market figure was only 3.3 MM so the 9 month numbers are a better guide. Even after the recent share price rise, its still only around a 10 PE. I still need to listen to the CC.
I don't really pay much attention to analyst target prices but I usually find the reports are worth a read. Here's a little snippet from the BMO report about the coming accounting changes (the Jennings report posted on the thread earlier this year also discussed this).
We are also introducing a 2011 EPS estimate of $5.25
based on current Canadian accounting standards. Although IFRS for
mortgage securitizations has not yet been finalized, we have alsoestimated 2011 EPS under two possible scenarios. Under scenario
A, assuming net interest income on mortgages securitized during
the period instead of gains on sale, our 2011 EPS estimate would be $4.50. However, under scenario B, assuming net interest income
on mortgages securitized during the period instead of gains on sale
plus net interest income on the portfolio of mortgage-backed security
assets under administration, our 2011 EPS estimate would be $6.00.
Thus, under IFRS our 2011 estimate would be 15% above or below
the $5.25 under current Canadian accounting standards.