Scotiabank initiated with a Hold at Jefferies

Jefferies initiated coverage of Scotiabank with a Hold rating and C$63 price target. The firm says it is initiating coverage on the Canadian banks at “an inauspicious time,” given the concerns that a potential recession could have on earnings and valuation. However, the “banks are in good stead,” and once the Canadian banks weather the expected economic slowdown, their prospects are “quite solid,” says the firm, which is not anticipating any lasting pain from a potential shallow recession.