Scotiabank downgraded to Neutral from Buy at BofA

BofA downgraded Scotiabank (BNS) to Neutral from Buy with a price target of C$70, down from C$82. The firm sees a “sea change” in the bank’s operating outlook in light of trade tensions. While no bank will be immune to slowing GDP growth or from a potential recession, Scotiabank has a “relatively narrow path” to outperform in this backdrop given its “idiosyncratic risks,” including exposure to Mexico and Latin America, the analyst tells investors in a research note. The bank’s “below average” CET1 capital versus peers limits its defensibility into a worsening macro environment, adds BofA.