- Credit Suisse likes the Canadian banks, upgrading Scotiabank (BNS +0.5%) to Buy with price target boosted to $68 from $61. The team has also reportedly hiked price targets on Bank of Montreal (NYSE:BMO) and Royal Bank of Canada (NYSE:RY).
- The banks have had a nice run of late, says Stonecap Secuirites' Brad Smith, but their now-pricey valuations mean strong Q4 numbers (reporting in late November/early December) are going to be needed to keep the momentum going. He's expecting 6-7% Y/Y earnings growth with the gains coming from lower expenses as opposed to the improving credit which boosted previous quarters' earnings.
- The mortgage market? Unlike what's been seen in the U.S., it's still going strong north of the border. Like the U.S. however, capital markets action and net interest margins will remain sluggish.
- Smith also has BNS as a Buy as he sees the slow performer this year playing catch-up in 2014. The flip side: Strong performers BMO and TD Bank are Sells.