TD Cowen analyst Mario Mendonca has maintained their neutral stance on NTIOF stock, giving a Hold rating today.
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Mario Mendonca has given his Hold rating due to a combination of factors influencing the National Bank of Canada’s current and future performance. The bank’s recent earnings exceeded expectations, driven by strong trading revenue and fee income, yet concerns remain about credit quality, particularly in the commercial lending segments of ABA and CWB. Despite a positive outlook on revenue and capital synergies from CWB, the bank’s premium valuation and business mix, which is heavily weighted towards trading, are seen as less desirable.
Additionally, while the bank’s guidance on revenue and expense synergies from CWB is promising, the impaired loan provisions have increased, reflecting higher losses in commercial and ABA sectors. The bank’s performance in P&C earnings has been weaker compared to peers, although organic loan growth has been stronger. The anticipated benefits from CWB synergies and expected improvements in net interest margin and marketing spend in 2026 suggest potential for future performance gains, but current credit concerns and valuation lead to a Hold rating.
According to TipRanks, Mendonca is a 5-star analyst with an average return of 17.4% and a 69.76% success rate. Mendonca covers the Financial sector, focusing on stocks such as Bank Of Nova Scotia, National Bank of Canada, and Trisura Group Ltd.
In another report released today, Canaccord Genuity also maintained a Hold rating on the stock with a C$166.00 price target.