Wednesday’s analyst upgrades and downgrades
Analyst John Aiken from Jefferies believes that Canadian banks will report solid second-quarter earnings despite potential headwinds. He notes that while loan growth may remain constrained, the banks' valuations are historically high, and any negative commentary from management could impact investor sentiment. Aiken maintains a cautious stance with no Buy ratings across his banking coverage, emphasizing the importance of profitability and relative performance among the banks.
- ▪Jefferies analyst John Aiken expects solid second-quarter results for Canadian banks despite potential headwinds.
- ▪He maintains that the banks are fully valued, with downside risk greater than upside risk.
- ▪Aiken made target price changes for several banks while keeping his 'hold' recommendations.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountInside the Market’s roundup of some of today’s key analyst actionsJefferies analyst John Aiken does not think second-quarter earnings season will threaten the “historically high” valuations for Canadian banks despite “some serious potential headwinds,” believing “with almost all the upside priced in, any questions surrounding promised robustness of the second half of 2026 could potentially upset the apple cart.” “While the results should be solid, much will hinge on the conviction of management’s commentary to support current levels,” he added.In a client report released before the bell titled The Calm Before the Storm, Mr.
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