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Credit Suisse analyst Kevin Choquette’s bullish view has market history on its side, with Royal Bank of Canada as one of his top picks in the sector.
Credit Suisse analyst Kevin Choquette’s bullish view has market history on its side, with Royal Bank of Canada as one of his top picks in the sector.
(Mark Blinch/Reuters)

It’s time to buy Canadian bank stocks: top analyst

Credit Suisse analyst Kevin Choquette believes Canadian banks are both oversold and undervalued, making now the perfect time for domestic investors to add bank stocks to their portfolios.

Valuation levels in the bank sector, notably price-to-book-value (P/BV) ratios, are the main driver of Mr. Choquette’s optimism. The S&P/TSX bank index currently trades with an average price-to-book ratio of 1.5 – the most attractive levels since April of 2009. The market is pricing the sector for expected loan losses that are far beyond what will actually occur, according to Mr. Choquette.