Analyst Mario Mendonca of TD Cowen maintained a Buy rating on Bank Of Nova Scotia, with a price target of C$104.00.
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Mario Mendonca has given his Buy rating due to a combination of factors that indicate a positive outlook for the Bank of Nova Scotia. The bank has shown solid year-over-year net interest margin (NIM) expansion and balance sheet optimization efforts, which are expected to support earnings per share (EPS) growth in 2026. Additionally, the bank’s valuation is seen as discounted, and there is momentum in growth that could further enhance the return on equity (ROE).
Retail loan growth has improved in both domestic and international markets, surpassing forecasts, and is expected to continue into 2026, including commercial loans. The bank’s focus on client primacy is anticipated to bolster credit and growth prospects, including fee income that supports ROE. Moreover, the bank’s net interest margin is trending higher on a year-over-year basis, aided by lower funding costs and mix improvements. Despite higher provisions for credit losses (PCLs), management remains confident about improving credit conditions in the latter half of 2026. Stable capital levels and strong organic capital generation further support the bank’s ability to continue share buybacks.
According to TipRanks, Mendonca is a 5-star analyst with an average return of 17.4% and a 69.76% success rate.
In another report released today, UBS also reiterated a Buy rating on the stock with a C$106.00 price target.