Cormark Increases Earnings Predictions for Bank of Nova Scotia

On November 25, 2024, analysts at Cormark announced an increase in their earnings estimates for the Bank of Nova Scotia (TSE:BNS – Free Report) (NYSE:BNS). Analyst L. Persaud now expects the bank's earnings per share (EPS) for the fiscal year 2025 to be $7.06, which is up from the previous estimate of $6.93. Currently, Cormark holds a "Market Perform" rating for the bank's stock with a target price set at $65.00. The average consensus for the bank's earnings for the current year stands at $7.13 per share. Additionally, Cormark has provided an estimate for the Bank of Nova Scotia's earnings for fiscal year 2026, predicting an EPS of $8.02.

The Bank of Nova Scotia recently reported its quarterly earnings on August 27, revealing an EPS of C$1.63, which matched analysts' expectations. During the quarter, the bank generated revenue of C$8.36 billion, slightly below the anticipated C$8.50 billion. The bank achieved a return on equity of 9.49% and maintained a net margin of 25.38%.

Other analysts have also been active in revising their views on the Bank of Nova Scotia. Bank of America upgraded the bank's rating from "neutral" to "buy" and raised its price target from C$73.00 to C$90.00 in a report dated November 19. Similarly, Cibc World Markets changed its recommendation from "hold" to "strong-buy" on September 20. UBS Group followed suit with an upgrade to "strong-buy" on November 18. Royal Bank of Canada also increased its price target from C$62.00 to C$65.00 while maintaining a "sector perform" rating as of August 28. BMO Capital Markets has recently raised their target price from C$72.00 to C$84.00 as of November 18. Presently, seven analysts have assigned a "hold" rating, four have issued a "buy" rating, and two have declared a "strong buy," indicating a general consensus of "Moderate Buy" with an average target price of C$76.00.

Bank of Nova Scotia Stock Performance

As of Tuesday, the stock for Bank of Nova Scotia opened at C$79.52. It currently boasts a market capitalization of C$98.60 billion, a price-to-earnings (P/E) ratio of 13.93, a P/E growth (P/E/G) ratio of 1.33, and a beta of 0.97. Over the past year, the stock has seen a low of C$56.83 and a high of C$79.70, with its 50-day moving average at C$73.96 and a 200-day moving average at C$67.92.

Recent Dividend Announcement

The Bank of Nova Scotia has also recently declared a quarterly dividend, which was paid on October 29. Shareholders recorded on October 2 received a dividend of $1.06. The ex-dividend date was October 2, making the annualized dividend $4.24 and yielding 5.33%. The current payout ratio for the bank is 74.26%.

Overview of Bank of Nova Scotia

The Bank of Nova Scotia provides a full range of banking and financial products across various regions, including Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean, and Central America. Its operations are organized into segments including Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets.

Banking, Earnings, Estimates