The Globe and Mail reports in its Friday, April 4, edition that CIBC World Markets analyst Paul Holden thinks a "defence over offence" strategy for investing in North American banks continues to make sense, but he says his preference for U.S. over Canada has ended. The Globe's David Leeder writes in the Eye On Equities column that Mr. Holden downgraded his recommendation for National Bank of Canada to "underperformer" from "neutral." Mr. Holden cut his share target by $12 to $115. Analysts on average target the shares at $134.79. Mr. Holden says in a note: "Our downgrade is centred on ABA Bank and the potential negative consequences from U.S. tariffs on Cambodia. A 49-per-cent tariff rate on Cambodia is likely to have a material impact on the economy given its dependence on U.S. exports. National Bank of Canada does not have a lot of direct exposure to the manufacturing sector, but second-order impacts through GDP growth and unemployment have the potential to be significant. We think it is best to sidestep this potential pitfall." The Globe reported on Nov. 27 and March 6 that Mr. Holden rated National Bank "neutral." The shares could then be had for $138.43 and $116.31.