Cormark Securities maintains the market perform rating for Bank of Nova Scotia stock.
Based on the Bank of Nova Scotia Stock Forecast from 17 analysts, the average analyst BNS stock price target 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 BNS stock forecast is Slightly Bearish, which is based on 4 positive signals and 5 negative signals. At the last closing, Bank of Nova Scotia stock price was CAD 67.30. Bank of Nova Scotia stock price has changed by -4.29% over the past week, -7.50% over the past month and -14.91% over the last year.
About Bank of Nova Scotia (BNS:TSX):
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 company operates a network of 954 branches and approximately 3,766 automated banking machines in Canada; and approximately 1,300 branches and a network of contact and support center internationally. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.
What we like:
Superior total returns:
BNS 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:
BNS stock price 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.
The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.
Superior Revenue Growth:
BNS stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
The total returns for BNS stock 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:
BNS stock price is trading high compared to its peers on a price to earning basis and is above the sector median.
Poor return on equity:
Bank of Nova Scotia stock management has delivered below median return on equity in the most recent 4 quarters compared to its peers.
Poor return on assets:
Bank of Nova Scotia stock management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
BNS stock had negative total cash flow in the most recent four quarters.