Canaccord Genuity analyst Matthew Lee has maintained their neutral stance on NTIOF stock, giving a Hold rating on August 20.
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Matthew Lee’s rating is based on a combination of factors that reflect both strengths and challenges faced by the National Bank of Canada. The bank reported an adjusted cash EPS that was slightly below consensus expectations, indicating some pressure on earnings performance. Although revenue growth was strong, the increase in expenses nearly matched this growth, resulting in modest positive operating leverage.
Additionally, while certain segments like Wealth Management performed in line with expectations, others such as Financial Markets and P&C Banking fell short of estimates, which may have influenced the Hold rating. The bank’s credit performance showed improvement, with lower-than-expected provisions for credit losses, but the net interest margin experienced a slight decline. Overall, the bank’s strong capital position, as evidenced by a CET1 ratio above expectations, provides a solid foundation, yet the mixed performance across segments suggests a cautious approach, justifying the Hold recommendation.
In another report released on August 20, CIBC also maintained a Hold rating on the stock with a C$151.00 price target.