Research Alert: CFRA Reiterates Buy Recommendation On Shares Of National Bank Of Canada

04:35 PM EDT, 08/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by CAD14 to CAD184, 15.3x our FY 26 (Oct.) EPS view, a premium to its five-year forward P/E of 10.5x given expected efficiency gains and improving revenue diversity. We increase our FY 25 EPS view to CAD11.17 from CAD11.14 and raise FY 26's to CAD12.01 from CAD11.96. Our revenue projections are CAD13.9 billion and CAD14.5 billion for FY 25 and FY 26, respectively. While credit has been a mixed bag in recent quarters, we remain confident that NA will successfully navigate these issues. The company has maintained its FY 25 impaired provision for credit losses (PCL) guidance in the 25-bp to 35-bp range. Notably, NA has taken a cautious approach by increasing its credit allowance for 13 consecutive quarters, which combined with its strong capital position reinforces our confidence in the bank's balance sheet strength. We expect NA to continue outperforming its peers from a balance sheet perspective as it expands into new Canadian Western Bank markets.

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