RBC Capital Markets raised its price target on Bank of Nova Scotia (BNS.TO, BNS) to $74 from $65.

Analyst Darko Mihelic maintained a Sector Perform rating on shares of the Canadian bank following its quarterly results.

"We model good core EPS growth in 2025 of approximately 10% despite lowering our estimates as we believe our previous expectations were too high," Mihelic said in a note to clients.

"We model a total PCL ratio of 0.53% in 2025 as we expect impaired PCLs to persist with small releases in performing PCLs," the analyst said.

"We raise our target P/E multiple from 9.0x to 10.5x as we believe the potential impacts of mortgage payment shock and high unemployment have subsided (lower risk for BNS and Canadian banks)."

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