Eight analysts on the Street rate Bank of Nova Scotia "buy or outperform," two are at "hold or sector perform" and one at "sell-underperform." RBC Dominion Securities analyst Andre-Philippe Hardy wants to explain why at "sector perform," he is less positive than his counterparts why a "shift in sentiment toward a more neutral stance may surface." While he isn't questioning the bank's strategy, he cites "timing, shifting macro environment and high investor expectations" for his less than positive view. Among other things, he figures Scotiabank's valuation is "benefitting more than other banks from capital markets' fairly lax attitude toward risk." But he predicts "positive returns" from holding the stock, pointing out that his $57 price target is 9.2 per cent higher than the current price of $52.19, and the stock's dividend yield is 3.4 per cent. "Scotiabank holds the most excess capital of the Canadian group and has, in our mind, above-average medium- and long-term growth prospects, compared with its peers due to its presence in Latin America and the Caribbean," he writes.
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