Post by
Botero789 on Jan 09, 2025 10:09am
BNS - large price target increase by RBC analyst.
Despite a lukewarm response from the market on the Latin America deal by Scotiabank, the analysts have all been pretty much positive on this deal. Transferring the banking assets in Colombia, Costa Rica and Panama under Davivienda is a smart move. It is hard to sell assets at a good price that are currently not making a profit, therefore Scotiabank did the next best thing. Davivienda is presently profitable in the three jurisdictions noted. Therefore, with synergies of combining the assets With a profitable bank of larger scale, Scotiabank gets very quickly to a profitable state in all three areas. And creates the optionality to sell the banking assets outright to Davivienda at some point in the future.
This is being recognized. Darko Mihelic Today raised the target price on the stock from $74-$83.
GLTA!