08:11 AM EST, 03/05/2025 (MT Newswires) -- CIBC Capital Markets lowered its price targets on five Canadian banks.

Analyst Paul Holden reduced his target on Bank of Montreal ( BNKD ) to $152 from $156 (Outperformer), Bank of Nova Scotia ( BNS ) to $75 from $81 (Neutral), National Bank of Canada ( NTIOF ) to $127 from $135 (Neutral), Royal Bank of Canada ( RY ) to $167 from $175 (Neutral), and Toronto-Dominion Bank ( MLWIQXX ) to $95 from $96 (Outperformer).

"With tariffs in play, our bank EPS estimates come down," Holden said in a note to clients. "The only adjustment we are making to our models with this note is the addition of performing PCLs effective FQ2."

"If tariffs stay, we anticipate further model adjustments will be required (e.g., lower loan growth, potentially lower NIM for BoC monetary response, higher trading revenue, etc.)," the analyst said.

"We are back playing for downside protection, a playbook used too often over the last five years, Holden said.

"BMO and TD, the two banks with the lowest proportion of Canadian loans and highest proportion of USD earnings, are our tariff protection picks. We reduce our price targets for the big banks based on a higher risk premium."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)