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

01:15 AM EST, 02/26/2026 (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 CAD35 to CAD250, which is 17.9x our FY 27 (Oct.) EPS view, a premium to its five-year forward P/E of 10.7x given expected efficiency gains and improving revenue diversity. We increase our FY 26 EPS view to CAD12.65 from CAD12.05 and raise our FY 27 EPS view to CAD13.97 from CAD13.09. Our revenue projections are CAD15.3 billion for FY 26 and CAD16.1 billion for FY 27. After a weak ROE finish to FY 25, Q1 FY 26 results were encouraging as NA's ROE jumped to 16.6%, a strong result. Even more promising was management's upgraded full-year ROE guidance to 16% (up 100 bps). NA is well positioned to achieve and exceed this target as it continues to outperform peers. Key tailwinds include acquisition synergies, industry-leading organic asset growth, and improving credit quality. Additionally, NA's CET1 ratio of 13.7% provides room for capital optimization, which would further boost ROE. Of note, with shares surging 49% over the past year, NA's dividend yield is down to 2.6%.

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