National Bank of Canada downgraded to Sector Perform at Scotiabank

Scotiabank downgraded National Bank of Canada to Sector Perform from Outperform with a price target of C$97, down from C$105. While “it may look like springtime for bank stocks,” the firm remains skeptical about an ideal outcome given the persistence of inflation over time. The firm newly revised annual estimates, including the introduction of its FY25 numbers, highlight that its base case is not a soft landing scenario but a “higher for longer” rate environment that will increasingly strain consumer finances, the analyst tells investors.