- Worried about the effect of the energy crash on Canadian lenders, the market is ignoring structural improvements in revenue and loan mix, balance sheet improvements, and profitability, says analyst Kevin Choquette.
- Share prices are lower by about 5% this year even though earnings are up 6% and dividends by 8%. Toss in price-to-book values at their lowest level since during the financial crisis.
- It's a great opportunity to buy, says Choquette, reiterating Outperform ratings on Royal Bank of Canada (RY -0.4%) and Bank of Montreal (BMO -0.8%), and upgrading National Bank of Canada (OTCPK:NTIOF -0.3%) to Outperform.