Scotiabank downgraded to Hold after earnings miss at Canaccord

Canaccord analyst Scott Chan last night downgraded Scotiabank to Hold from Buy with a price target of C$74, down from C$82. The company reported a significant adjusted earnings miss primarily due to lower net interest income and higher expenses, the analyst tells investors in a research note. The firm expects to see continued margin pressure near term for Scotiabank relative to peers and believes there could be large potential strategic changes in certain segments under the new leadership, "creating some near-term uncertainty on the strategic front."