BofA lifts Bank of Nova Scotia shares to buy, ups target on positive outlook

Published 19/11/2024, 13:12
BofA lifts Bank of Nova Scotia shares to buy, ups target on positive outlook

On Tuesday, Bank of Nova Scotia (NYSE:BNS:CN) (NYSE: BNS) received an upgrade in its stock rating from BofA Securities, moving from Neutral to Buy. The firm also increased the price target for the bank's shares to Cdn$90.00, up from the previous Cdn$73.00. This adjustment reflects a positive outlook on the bank's future performance.

The analyst from BofA Securities highlighted significant changes within the Bank of Nova Scotia that have taken place since February 2023, under the leadership of CEO Scott Thomson. These changes include a revamp of the leadership team, which now features external hires, a sharpened focus on franchise profitability, and a strategic shift in capital deployment towards markets in Canada and the United States.

The strategic initiatives implemented by CEO Thomson are expected to yield substantial results for the Bank of Nova Scotia. According to the BofA Securities analyst, these efforts are projected to result in an approximate 300 basis points improvement in return on equity (ROE) by the year 2027. This anticipated improvement is seen as a key driver for the bank's stock to potentially outperform in the market.

The positive assessment of the Bank of Nova Scotia's turnaround efforts underlines the confidence in the bank's trajectory towards growth and profitability. BofA Securities' new price target of Cdn$90.00 represents a significant increase and suggests a promising outlook for the bank's investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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