The Globe and Mail reports in its Friday edition that RBC Dominion Securities analyst Darko Mihelic continues to rate National Bank of Canada "sector perform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Mihelic tweaked his share target lower by a loonie to $144. Analysts on average target the shares at $136.86. While National Bank's first quarter 2025 earnings per share exceeded Mr. Mihelic's expectation, he warns of "signs of credit quality deterioration." Mr. Mihelic says in a note: "We were surprised that there was little discussion on potential tariff impacts (and National Bank position in Quebec is a slight mitigant). We model higher impaired PCL ratio assumptions in personal and commercial. We do not expect financial markets earnings to repeat and uncertainty came at an inopportune time for the Canadian Western Bank integration. ... We increase our impaired PCL ratio assumptions in personal and commercial, and our 2025 overall impaired PCL ratio increases to 30 bps (was 27 bps), in the middle of NA's new guided range. ... For 2026, our core EPS estimate increases as we have higher earnings expectations in Financial Markets, which more than offset reduced P&C earnings estimates."
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