UBS raises Bank of Nova Scotia stock price target to C$94 on earnings beat

Published 28/08/2025, 05:26
UBS raises Bank of Nova Scotia stock price target to C$94 on earnings beat

Investing.com - UBS has raised its price target on Bank of Nova Scotia (TSX:BNS) (NYSE:BNS) stock to C$94.00 from C$88.00 while maintaining a Buy rating following the bank’s third-quarter earnings beat. The bank, currently valued at $77 billion, is trading near its 52-week high of $62.34, with InvestingPro analysis suggesting the stock is slightly undervalued.

The earnings outperformance was driven by lower provision expenses and pre-tax pre-provision (PTPP) strength across multiple divisions, including Global Banking and Markets, International Banking, and Canadian Banking.

UBS has increased its 2025 earnings per share (EPS) forecast for Bank of Nova Scotia to $7.00 from $6.85 previously, while its 2026 EPS projection rises to $7.90 from $7.75.

The revised model incorporates lower forward-looking credit costs to reflect improved trends in consumer credit compared to UBS’s previous forecast.

UBS also adjusted its revenue forecast upward for Bank of Nova Scotia, with slight increases in net interest income and more substantial improvements in noninterest income, reflecting strength in both capital markets and wealth management segments.

In other recent news, Scotiabank reported its Q3 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.88, which was higher than the forecasted $1.73, resulting in an 8.67% surprise. Revenue also exceeded projections, coming in at 9.49 billion dollars compared to the anticipated 9.3 billion dollars. These results highlight a strong financial performance for the quarter. The earnings announcement was well-received, reflecting positively on the company’s recent operations. While analyst reactions were not specified, the earnings beat suggests a favorable outlook from the market. This development is part of a series of recent updates from Scotiabank.

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