Big Six Q1 profits strong; mixed signals with PT cuts/upgrades, momentum peaks
Key Questions
How did the Big Six Canadian banks perform in their Q1 earnings?
The Big Six banks reported strong Q1 profits with beats across the board, including TD EPS +15% to $6.87, BMO revenue +10.7% and EPS +18.86%, NA EPS beat $2.34, CM $1.99, and RY $2.94. Metrics like ROE were solid (BMO 11.65%, BNS 12.5%, NA 16%), though provisions rose at CM by 20%.
What is the current status and price target for TD Bank stock?
TD stock reached a 52-week high of C$137.77, up 4.21% weekly, with current price around C$137.77. Zacks rates it #2 Buy with PT C$139 (30% undervalued), range C$132-142, and 3.26% yield.
Is BMO stock considered undervalued, and what are its Q1 highlights?
BMO showed growth with revenue +10.7%, EPS +18.86%, and ROE 11.65%; fair value estimated at C$204 vs current C$191. Current price is C$190.87.
What key metrics were reported for Bank of Nova Scotia (BNS)?
BNS reported NIM and ROE of 12.5%, with PT C$106 (+8%) and 39% undervalued to C$160, offering 4.5% yield. Current price is C$97.86.
What are CIBC's (CM) Q1 results and upcoming Q2 expectations?
CM reported Q1 EPS $1.99 with provisions +20% and CET1 13.1%; 5.5% undervalued at C$143 vs current C$135. Q2 earnings expected June 4 with EPS $1.78 (+23.6%).
Which banks received upgrades from Globe and Mail analysts?
Globe and Mail issued upgrades for National Bank (NA) and Royal Bank (RY). NA beat Q1 with $2.34 EPS, fair C$180 (33% undervalued), ROE 16%; RY Q1 EPS C$2.94, PT C$244.
What mixed signals are present in analyst price targets for these banks?
While Q1 profits were strong and momentum peaked, there are mixed signals with some PT cuts and upgrades; examples include BMO fair C$204, BNS PT C$106 (+8%), and overall undervaluation estimates like 30% for TD and 39% for BNS.
What should investors monitor next for the Big Six banks?
Investors should monitor Q2 earnings and CET1 ratios, alongside OSFI credit watch. Current prices: BMO C$190.87, BNS C$97.86, CM C$135, TD C$137.77.
Q1 beats (TD EPS +15% $6.87/52-wk high C$137.77 +4.21% weekly/Zacks #2 Buy PT C$139/30% underv C$132-142/3.26% yield, BMO growth Rev+10.7%/EPS+18.86%/ROE11.65%/fair C$204 vs C$191, NA $2.34 beat/C$180 fair 33% underv/ROE16%/upgrades, BNS NIM ROE12.5%/PT C$106 +8%/39% underv C$160/4.5% yield, CM Q1 $1.99 prov+20% CET113.1%/5.5% underv C$143/Q2 June4 $1.78+23.6%, RY C$2.94/PT C$244); Globe upgrades NA/RY. OSFI credit watch; prices BMO C$190.87/BNS C$97.86/CM C$135/TD C$137.77. Monitor Q2/CET1.