RBC Capital Markets lowered its price target on Bank of Nova Scotia (BNS.TO, BNS) to $81 from $83.

Analyst Darko Mihelic maintained a Sector Perform rating on shares of the Canadian bank following its fiscal Q1 results on Tuesday.

"BNS had stronger than expected results reflecting strength in revenues and performing PCLs versus our estimates," Mihelic said in a note to clients.

"The large performing PCL build due to tariff risk did not happen this quarter as we expected, and we now expect this to occur in Q2/25," the analyst said.

"We also expect to see an increase in impaired PCLs through 2025 and we raise our impaired PCL ratio assumptions in both retail segments," Mihelic said.

"We expect capital markets strength to recede somewhat and we assume lower loan growth (in Canada and IB)."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)