Canaccord Genuity Maintains a 'Hold' on Bank of Nova Scotia (BNS); Mexico Q1/11 Results

Canaccord Genuity maintains a 'Hold' on Bank of Nova Scotia (NYSE: BNS), PT C$66.

Canaccord analyst says, "Last Friday Grupo Scotiabank (Mexico) reported Q1/11 earnings of P917 million, up 8% and 4% YoY and QoQ, respectively. The tax rate in the quarter of 29% was significantly higher than last year (21%), reflecting higher deferred taxes partially offset by lower current taxes. On a pretax basis earnings were up 20% YoY. Much higher gains on foreclosed assets as well as other non-loan loss related recoveries accounted for much of the increase in pretax earnings."

"Our target price of C$66.00 is based on a 13.0x P/E multiple applied to 2012E EPS of $4.92. We assign a 4% premium relative to our group target P/E of 13.0x in valuing the stock. BNS reports Q2/11 results on May 31, 2011. We forecast core cash EPS of $1.11. Consensus stands at $1.09."

For more ratings news on Bank of Nova Scotia click here and for the rating history of Bank of Nova Scotia click here.

Shares of Bank of Nova Scotia closed at $60.16 yesterday.

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