RBC Capital Raises Price Target For Its Favorite "Risk On" Bank Stock

RBC Capital analyst Darko Mihelic raised the price target for Bank of Nova Scotia BNS BNS to C$94 from C$93.

The analyst maintained the Outperform rating on the shares.

Mihelic states that the 2Q22 results were promising as both International and Canada P&C had better than expected results.

Impairments and write-offs remained low and the only concern on credit is that BNS has the least amount of pandemic reserves left to reverse back into earnings/capital, added the analyst.

Mihelic says that the International P&C segment is key to the thesis; he continues to see improving NIMs and loan growth and solid underlying credit this quarter.

Price Action: BNS shares are trading higher by 0.98% at C$84.57 on TSX and 1.18% higher at $66.10 on NYSE on the last check Thursday.

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