Barclays Maintains an 'Underweight' on Bank of Nova Scotia (BNS); When Being in Line Isn't Enough
Tweet
Share
E-mailGet Alerts BNS Hot Sheet
Price: $87.57 +1.31%
Rating Summary:
5 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Barclays maintains an 'Underweight' on Bank of Nova Scotia (NYSE: BNS) price target of $54.00.
Barclays analyst said, "Scotia reported headline earnings in line with consensus versus its peers that all materially exceeded consensus on a reported basis. Similar to its peers, however, there were several issues in the quarter that served to reduce the quality of earnings. Without a comparable buffer against consensus, the market took a decidedly negative view to its earnings and its valuation declined on an absolute and relative basis on Friday (down 2.5% against an average gain of 98 bps for the other
5 banks and the TSX down 0.3%)."
"Although we continue to believe that Scotia retains the best long-term revenue upside of the group with its international banking platform, it has struggled with its operating leverage in 2011. While a resumption of positive operating leverage would be quite beneficial to relative earnings and, by extension, its valuation, the market will likely wait for proof, management's optimism aside."
For an analyst ratings summary and ratings history on Bank of Nova Scotia click here. For more ratings news on Bank of Nova Scotia click here.
Shares of Bank of Nova Scotia closed at $48.09 yesterday.
Barclays analyst said, "Scotia reported headline earnings in line with consensus versus its peers that all materially exceeded consensus on a reported basis. Similar to its peers, however, there were several issues in the quarter that served to reduce the quality of earnings. Without a comparable buffer against consensus, the market took a decidedly negative view to its earnings and its valuation declined on an absolute and relative basis on Friday (down 2.5% against an average gain of 98 bps for the other
5 banks and the TSX down 0.3%)."
"Although we continue to believe that Scotia retains the best long-term revenue upside of the group with its international banking platform, it has struggled with its operating leverage in 2011. While a resumption of positive operating leverage would be quite beneficial to relative earnings and, by extension, its valuation, the market will likely wait for proof, management's optimism aside."
For an analyst ratings summary and ratings history on Bank of Nova Scotia click here. For more ratings news on Bank of Nova Scotia click here.
Shares of Bank of Nova Scotia closed at $48.09 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Vireo Growth completes acquisition of C21 Investments
- Investing.com’s stocks of the week
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
