Inside the Market’s roundup of some of today’s key analyst actions. This file will be updated during the trading day.
CIBC World Markets analyst Robert Sedran has a message for investors who were rattled by last week’s warning from S&P about Canadian banks: relax, bank valuations are not a problem.
“Valuation has become topical with bank shares showing strong performance over the last year,” says Mr. Sedran, in a research note. “Despite being above historical averages, we see business and economic conditions as supportive of these higher valuation levels. We raise our group target multiple to 12.5x from 11.9x to reflect this view.”