Scotiabank hits over 2-yr high after UBS upgrades to 'buy'
18/11/2024 19:14
** Shares of Canadian lender Scotiabank BNS.TO rise 2% to
C$77.46, hitting their highest in more than two years
** UBS upgrades BNS to "buy" from "neutral; raises stock PT
to C$85 from C$72, a 12% upside to stock's last close
** Brokerage expects lower interest rates to have a more
immediate impact on BNS's net interest income (NII) - the
difference between what they earn on loans and pay out for
deposits - and drive its earnings growth higher
** With earnings momentum and greater confidence in path to
higher return on equity (ROE) - a key metric to gauge a
company's profitability without stock buybacks, UBS expects
potential expansion of valuation multiple
** BNS is the only bank among the largest six Canadian
lenders to disclose an NII benefit in a declining rate
environment - UBS
** Two of 16 brokerages rate the stock "buy", 11 "hold" and
three "sell"; median PT is C$71, according to data compiled by
LSEG
** As of last close, BNS shares up 17.7% YTD
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))