Scotiabank upgraded to Outperformer from Neutral at CIBC

CIBC upgraded Scotiabank to Outperformer from Neutral with an C$82 price target. With interest rate cuts underway as economic risks are moving lower and valuation spreads remain wide, the stage is set for a trade out of premium banks into discounted banks, the analyst tells investors in a research note. The firm believes Scotiabank could post the highest earnings compound annual growth rate based on its rate exposure. It upgraded the shares while downgrading National Bank of Canada, saying the timing is right to “switch trades.”