Analyst Sohrab Movahedi of BMO Capital maintained a Buy rating on National Bank of Canada, retaining the price target of C$148.00.
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Sohrab Movahedi has given his Buy rating due to a combination of factors including National Bank of Canada’s solid financial performance and strategic positioning. The bank reported a minor beat in earnings per share relative to his forecast, driven by strong results in Personal & Commercial Banking and higher treasury revenue, despite a slight miss against consensus expectations.
Additionally, the bank’s robust capital levels, with a CET1 ratio of 13.9% and a liquidity coverage ratio of 161%, provide a strong buffer above regulatory requirements. The acquisition of CWB is expected to enhance earnings growth and diversification, complementing the bank’s successful international strategy. Movahedi appreciates the bank’s commitment to maintaining high return on equity while ensuring strong capital and reserve levels, which supports his positive outlook on the stock.
NTIOF’s price has also changed moderately for the past six months – from $82.910 to $105.080, which is a 26.74% increase.