Jefferies analyst John Aiken recently adjusted the firm's price target for Scotiabank (BNS, Financial), reducing it from C$76 to C$70 while maintaining a Hold rating on the stock. This comes as part of a broader re-evaluation of outlooks for Canadian financial institutions, with Jefferies anticipating that growth will resume by 2026.
The analysis reveals ongoing downside risks, highlighting that despite the traditional resilience of Canadian financials to economic downturns, factors such as domestic elections and unresolved tariff negotiations introduce uncertainty in the near term. These variables contribute to a murky forecast for the sector, as per Jefferies' research note.
The firm further indicates that while some negative aspects may have been accounted for in current valuations, the full extent of potential challenges is not completely reflected. Consequently, Jefferies has also revised its estimates downward for other major financial institutions including CIBC and National Bank of Canada.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Bank of Nova Scotia (BNS, Financial) is $48.59 with a high estimate of $53.89 and a low estimate of $39.04. The average target implies an upside of 2.36% from the current price of $47.47. More detailed estimate data can be found on the Bank of Nova Scotia (BNS) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Bank of Nova Scotia's (BNS, Financial) average brokerage recommendation is currently 3.5, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bank of Nova Scotia (BNS, Financial) in one year is $53.63, suggesting a upside of 12.98% from the current price of $47.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bank of Nova Scotia (BNS) Summary page.
