Wednesday, July 18, 2007

UBS Reiterates Its 'Buy' Rating on Scotiabank

UBS maintains its 'buy' rating on Bank of Nova Scotia, with a target price of $63.00, based on 13.5x forward earnings, a slight premium to the outlook for the banking group.

The research report noted that due to a broad range of moving parts, there is low visibility into the bank’s near-term international operations; Scotiabank is carrying on the integration of recent acquisitions, which is likely to bear fruit in the upcoming quarters. Scotiabank is focused on enhancing its international presence through acquisitions and has a healthy pipeline, UBS adds.