TORONTO, August 20, 2026, 12:10 EDT —
- BNS fell 1.68% to $86.22 in New York at 12:09 EDT.
- The average $87.43 target implied only 1.4% upside.
- Third-quarter results are due before markets open on August 25.
Bank of Nova Scotia (TSX:BNS; NYSE:BNS) shares fell 1.68% to $86.22 in New York trading on Thursday. The stock traded near its session low as Canadian banks declined together. The move came five days before Scotiabank reports third-quarter results.
The sell-off has not created much room to the Street’s average target. A $87.43 consensus target stood only 1.4% above the intraday price. Nine of 13 recommendations were Holds.
| Market snapshot | BNS |
|---|---|
| NYSE price | $86.22 |
| Day change | -1.68% |
| Session range | $86.06–$87.75 |
| 52-week range | $56.54–$92.04 |
| Forward P/E | 13.88× |
| Average target | $87.43 |
| Next earnings | August 25 |
The pressure was broad. Bank of Montreal (TSX:BMO; NYSE:BMO), Royal Bank of Canada (TSX:RY; NYSE:RY), Toronto-Dominion Bank (TSX:TD; NYSE:TD) and Canadian Imperial Bank of Commerce (TSX:CM; NYSE:CM) were all lower. Their declines ranged from 1.50% to 1.97% at comparable observation times.
| Bank | NYSE price | Day change | Forward P/E | Target gap | Consensus |
|---|---|---|---|---|---|
| BNS | $86.22 | -1.68% | 13.88× | +1.4% | Hold |
| BMO | $172.27 | -1.97% | 15.59× | -3.5% | Hold |
| RY | $204.51 | -1.50% | 16.88× | -4.9% | Buy |
| TD | $116.50 | -1.56% | 16.16× | -1.8% | Buy |
| CM | $115.64 | -1.87% | 15.15× | +1.4% | Buy |
BNS traded at a 12.6% discount to the 15.88-times median forward multiple of those four peers. That discount is real. Yet the consensus target says investors expect little near-term rerating.
Analysts have lifted targets ahead of earnings. Bank of America NYSE:BAC raised its U.S. target to $95 from $90 on Thursday and kept a Neutral view. CIBC raised its Canadian target to C$136 from C$122 on Wednesday, also with a Neutral rating.
| Recommendation | Date | Rating | New target | Old target |
|---|---|---|---|---|
| Bank of America | Aug. 20 | Neutral | $95 | $90 |
| CIBC | Aug. 19 | Neutral | C$136 | C$122 |
| TD Securities | Aug. 17 | Hold | C$124 | C$113 |
| Current consensus | Aug. 20 | Hold | 2 Strong Buy; 1 Buy; 9 Hold; 1 Sell | 13 ratings |
Scotiabank enters the report with a stronger second-quarter base. Reported net income rose 30% from a year earlier. Revenue gained 8%, while credit-loss provisions fell 13%. Chief Executive Scott Thomson cited “another quarter of positive operating leverage.” Scotiabank Q2 release
| Second-quarter measure | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Reported net income | C$2.632bn | C$2.032bn | +30% |
| Diluted EPS | C$2.00 | C$1.48 | +35% |
| Total revenue | C$9.837bn | C$9.080bn | +8% |
| Credit-loss provisions | C$1.217bn | C$1.398bn | -13% |
| Return on equity | 13.1% | 10.1% | +3.0 points |
| CET1 capital ratio | 13.3% | — | — |
The domestic business supplied most of the acceleration. Canadian Banking profit rose 53% to C$935 million. International Banking profit increased 4% to C$701 million. The split makes Canadian margins and consumer credit central to Tuesday’s update.
Preliminary consensus estimates call for adjusted third-quarter earnings of C$2.09 a share. That would be about 11% above a year earlier. Forecast revenue of C$9.918 billion implies growth of roughly 4.6%.
| Q3 preliminary estimate | Consensus | Year-earlier result | Implied growth |
|---|---|---|---|
| Adjusted EPS | C$2.09 | C$1.88 | +11.2% |
| Revenue | C$9.918bn | C$9.486bn | +4.6% |
| Reporting date | Aug. 25 | Before open | 8:15 EDT call |
Risks: A renewed rise in credit-loss provisions or adjusted EPS below C$2.09 could keep the valuation discount intact. Stronger margins and better Canadian credit performance could instead pull the shares toward recent analyst targets.
Scotiabank will release results before the market opens on August 25. Its conference call starts at 8:15 EDT. The proof point is narrow: whether Q2’s domestic profit jump survived into the summer.
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BNS investor dashboard
Price action
What the price says
BNS trades below the 15.88× median forward P/E of BMO, RY, TD and CM. The valuation is cheaper, but the average target still offers only 1.4% upside.
