Canaccord Reiterates Buy Rating on The Bank of Nova Scotia (BNS) After Mixed Q2 Results

On May 27, Canaccord reiterated its Buy rating on The Bank of Nova Scotia (NYSE:BNS), keeping its price target at C$79. Matthew Lee from Canaccord Genuity kept the rating on BNS stock after the company posted mixed results for the second quarter of 2025.

The analyst remains optimistic about BNS due to its strong financial position and growth potential. The company posted net interest income of C$5.27 billion, while its revenue experienced a 9% year-over-year growth.

Despite the earnings missing the estimates by a slight margin, Lee maintained his rating, driven by the bank’s robust performance in key segments, including Wealth Management and Global Banking and Markets, which exceeded expectations. Global Wealth Management delivered $405 million in earnings, up by 17% from a year ago. The company is now confident to achieve 14%+ ROE over the medium term and expects the company’s earnings per share to grow by 5-7% in FY2025.

Lee’s positive stance on BNS is backed by the bank’s strong capital position with a CET1 ratio of 13.2%, exceeding estimates and guidance, growing by 30 basis points year-over-year.  The company has also raised its dividend by 4%, which is also considered a positive move by the analyst. The net interest margin improved due to lower funding costs and deposit growth, reflecting a stable and growing customer base.

The Bank of Nova Scotia (NYSE:BNS) is a Canadian chartered bank that serves its clients through segments, including Canadian Banking, International Banking, Global Wealth Management, Global Banking and Markets, and Others.

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