Canadian Bank Coverage Updates
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National Bank Financial has updated its coverage on Canada’s major banks today, August 24th, maintaining a positive but increasingly selective outlook as the sector approaches another earnings season. The analyst continues to rate Royal Bank of Canada (RY:CA) and Toronto-Dominion Bank (TD:CA) with a Outperform rating , with 12-month price targets of $318.00 and $190.00 respectively. Meanwhile, Bank of Montreal (BMO:CA), Bank of Nova Scotia (BNS:CA) and Canadian Imperial Bank of Commerce (CM:CA) are maintained at Sector Perform rating, with 12 month price targets of $278.00, $128.00 and $180.00 per share.
The selective positioning is notable given that Canadian bank fundamentals remain broadly resilient, with strong capital-markets activity, wealth-management revenue and relatively contained credit losses have supported earnings expectations, although the sector’s strong share-price performance has also pushed valuations above historical averages.
The Royal Bank of Canada remains National Bank Financial’s highest-conviction large-bank idea, with the $318 12 month target alongside a Outperform rating, reflecting its scale, diversified earnings base and leadership across Canadian banking, wealth management and capital markets. TD-Bank also retains an Outperform rating from National Bank and a $190 target, suggesting the analyst sees further upside as the bank continues to benefit from its North American franchise and capital-markets exposure.
For BMO, Scotiabank and CIBC, the Sector Perform ratings suggest National Bank Financial remains comfortable with their underlying fundamentals but sees a more balanced risk-reward profile following the sector’s substantial advance.
The updates reinforce a positive outlook for Canadian banking fundamentals while acknowledging that elevated valuations leave less room for disappointment. With Canadian bank shares having materially outperformed the broader TSX in 2026, investors may increasingly differentiate between banks based on earnings momentum, franchise strength and the ability to sustain returns.
National Bank Financial remains positive on all Canadian banks, but its coverage update clearly identifies RBC and TD as its preferred opportunities, while maintaining a more neutral stance on BMO, BNS and CM.
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