Scotiabank downgraded at Canaccord on ‘relatively modest’ ROE expectations

As previously reported, Canaccord analyst Matthew Lee downgraded Scotiabank (BNS) to Hold from Buy with a price target of C$110, down from C$118. Scotiabank still has areas to address in the Canadian P&C bank and Wealth Management, where it has generally lagged the group, says the analyst. While the firm previously believed that Scotiabank would close the P/E gap with peers to 5%, it now expects the discount to remain unchanged given the firm’s “relatively modest” ROE expectations, the analyst tells investors.