Analysts rate The Bank of Nova Scotia (BNS:NYE) with a Strong Buy, $95 Target

STA Research
by: STA Research

Analysts rate The Bank of Nova Scotia with a consensus Strong Buy rating with a 12-month Target price of $94.75 per share.

TD Research downgrades The Bank of Nova Scotia to Hold, Target maintained at $100.

Based on The Bank of Nova Scotia stock forecasts from 9 analysts, the average analyst target price for The Bank of Nova Scotia is USD 0.00 over the next 12 months. The Bank of Nova Scotia’s average analyst rating is. Stock Target Advisor’s own stock analysis of The Bank of Nova Scotia is Neutral, which is based on 7 positive signals and 6 negative signals. At the last closing, The Bank of Nova Scotia’s stock price was USD 72.32. The Bank of Nova Scotia’s stock price has changed by -1.48% over the past week, -1.90% over the past month and +15.18% over the last year.

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates in four segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.

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.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on a total return basis, for investors seeking high-income yields.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

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 Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

Superior Dividend Growth

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

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market that can help it grow or acquire in the future.

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.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

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 cash flow

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

 

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