12:35 PM EDT, 05/28/2024 (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 USD1 to USD39, 7.9x our FY 2025 (Oct.) EPS view (USD4.97 converted from CAD), a discount to the peer average of 10.4x given weak growth prospects. We cut our FY 2024 EPS view to CAD6.55 from CAD6.63 and increase FY 2025's to CAD6.78 from CAD6.75. BNS posted adjusted Apr-Q EPS of CAD1.58 versus CAD1.70, CAD0.02 above consensus. Strength in the quarter was seen in Global Wealth Management (revenue +9%) as rising brokerage revenue and net interest income in Canada was met with higher mutual fund fees internationally. Canadian Banking rose 7% as strong credit card loan growth was complemented by 26 bps of net interest margin expansion to 2.56%. However, credit quality continued to deteriorate with gross impaired loans rising 16 bps Y/Y to 0.83%. Although BNS typically underperforms due to its higher-risk international portfolio, we were concerned with management's commentary as it also called out increasing weakness in its Canadian variable rate mortgage portfolio.