Analysts rate Bank of Nova Scotia(BNS:TSX) with a Hold rating and a target of $85

by: Gillian Lawrence
Bank of Nova Scotia stock forecast

Analysts rate Bank of Nova Scotia with a consensus Hold rating and a 12-month average target price of $85.21 per share.

Based on the Bank of Nova Scotia stock forecast from 17 analysts, the average analyst target price for Bank of Nova Scotia is CAD 85.21 over the next 12 months. Bank of Nova Scotia’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Bank of Nova Scotia is Slightly Bearish, which is based on 4 positive signals and 5 negative signals. At the last closing, Bank of Nova Scotia’s stock price was CAD 71.59Bank of Nova Scotia’s stock price has changed by -2.74% over the past week, -11.91% over the past month and -8.44% over the last year.

What we like:

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

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