The Globe and Mail reports in its Friday edition that Jefferies analyst John Aiken started coverage of Canadian banks on Thursday, calling it "an inauspicious time, given the concerns that a potential recession could have on earnings and valuation." The Globe's David Leeder writes that Mr. Aiken says in a note: "We are quite positive on the outlook for the Canadian banks as we anticipate that the group will benefit from an economic recovery spurred on by interest rate cuts by the Bank of Canada improving both household and business sentiment. However, our enthusiasm is tempered in the near term as we anticipate that the domestic economy will be in, or close to, a recession through the first half of the year. This will fuel concerns of outsized credit losses and dampened loan growth, creating share price volatility." Mr. Aiken continues to rate Toronto-Dominion Bank "sector perform," with a $92 share target. Mr. Aiken adds: "TD has taken some hits to its reputation, including walking away from First Horizon and the reported pending regulatory charges. We anticipate that a new strategy is likely, directing the use of its excess capital, but investors will need to see the blueprint before assessing."