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Research Alert: CFRA Maintains Buy Opinion On Shares Of National Bank Of Canada

BY MT Newswires | ECONOMIC | 12/03/25 04:20 PM EST

04:20 PM EST, 12/03/2025 (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 CAD31 to CAD215, 17.8x our FY 26 (Oct.) EPS view, a premium to its five-year forward P/E of 10.6x given expected efficiency gains and improving revenue diversity. We increase our FY 25 EPS view to CAD12.05 from CAD12.01 and start FY 27's at CAD13.09. We believe NA offers one of the most attractive risk rewards in Canadian banking. The bank is rapidly expanding its market presence, highlighted by its recent announcement to acquire Laurentian Bank's retail and SME banking portfolios, a strategic move that leverages NA's strong Quebec presence and should boost both earnings and ROE. Meanwhile, the Canadian Western Bank integration is delivering synergies ahead of schedule, with NA identifying revenue opportunities worth CAD200M-CAD250M. Combined with industry-leading organic asset growth and expectations for improved credit quality, we believe these factors position NA to achieve the upper end of its medium-term ROE target of 15%-20%.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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