TSE:BNS
Bank of Nova Scotia (BNS.TO)
112.36
-0.75 (0.66%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
2156 watching
Financials 
Technical Analysis 0
Investor Insights
Jun 5, 2026, 12:00 amThis summary was created by AI, based on 30 opinions in the last 12 months.
The Bank of Nova Scotia (BNS) has received mixed reviews from experts, highlighting its strong dividend yield and international focus, particularly in Latin America. While many analysts appreciate its valuation being relatively low compared to peers, there are concerns about strategic direction due to its recent investments. The bank is viewed positively for its turnaround potential under new management, yet some analysts caution about potential credit issues and the broader economic landscape affecting its performance. Overall, experts express a sense of cautious optimism, suggesting it is a solid long-term hold but emphasizing the importance of timing for new purchases.
Consensus
Hold
Valuation
Undervalued
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PAST TOP PICK
(A Top Pick Apr 09/21, Up 20.44%) Yield of 4.3%, reasonable payout ratio. You can hold it for the long run. He's been cutting back on financial exposure in general, because the yield curve is not as favourable and puts pressure on the banks.
Jason MannOwned
banks
BUY ON WEAKNESS
BNS vs. RY Broadly, Canadian banks are all driven by the consumer and mortgage market. RY is the premier name in Canada, he owns it at full weight, no plans to sell, not buying for new clients until there's a pullback. Canadian franchise is solid, great capital markets business, good long-term. Forays into US appear solid. One of the lower dividend yields in the space. BNS has one of the highest yields, more focused in Latin America, recent Chilean acquisition still TBD. He owns a small position. His other preference is TD. He's not adding to any of the banks, waiting to see how market digests rate increases and hoping for a market pullback.
Ryan BushellOwned
banks
COMMENT
Effect of the inverted yield curve? That curve measures interest rates from 30day money to 30-year. The longer you invest, the more you should get paid. What's happening now is that very-long duration bonds have declined as short-terms have risen. So that yield curve is flat. Sometimes, an inverted curve presages a recession, but he's not sure this will happen. When central banks unwind long-bond positions, he expects that yield curve to rise and will sort out the inversion. No, this isn't an issue for BNS.
banks
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly With recently reported earnings beating estimates by 37%, we reiterate BNS as a TOP PICK. It trades at 12x earnings and with further earnings growth forecasted next year, that should drop down to 8x. It is currently valued at just under 1.7x book value. It pays an excellent dividend, backed by a payout ratio under 55% of cash flow. We recommend trailing up the stop (from $78.50) to $87.50, looking to achieve $104 -- upside potential over 11%. Yield 4.25% (Analysts’ price target is $92.77)
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TOP PICK
A long-time favourite (also RY and CM). Sells at a modest discount to peers. All banks will do well with rising rates. He likes their commodity exposure and international diversity, namely South America. Expects more dividend hikes (Analysts’ price target is $95.07)
Michael SprungOwned
banks
TOP PICK
Big footprint in EM. Canada's third largest. Acquisitions are done for now. Visible path to double-digit returns, at just over 11x earnings. Record high, more in store. Yield is 4.40%. (Analysts’ price target is $94.15)
Brian MaddenOwned
banks
TOP PICK
Canadian banks are attractive due to rising interest rates. The bank has been underperforming compared to other big Canadian banks due to exposure to Latin America where vaccines aren't as prevalent. Trading at 10.5x earnings, inexpensive historically.
Teal LindeOwned
banks
TOP PICK
She likes the Canadian banks. BNS lagged the group, but trades at a double-digit discount in PE to its peers. Their international business has lagged the recovery because Covid has hit those areas hard; amounts to 20% of their overall business. They're restructuring but improving. The valuation discount will shrink. BNS raised their dividend and pays a 4.7% dividend at a a 47% payout ratio. (Analysts’ price target is $93.15)
Christine PooleOwned
banks
PAST TOP PICK
(A Top Pick Dec 04/20, Up 32%) Will continue to win back investors. With Latin American exposure, plus potential increases in commodities, it's well positioned to benefit from that. Trading at a discount to the group. Yield of 4.7% is amongst the highest. Towards the top of the list of banks he'd pick today.
Michael SprungOwned
banks
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly With recently reported earnings belaying concerns, BNS is a TOP PICK. EPS beat analyst expectations by over 30%. It trades at 11x earnings compared to peers at 13x and is currently valued at just over 1.5x book value. It pays an excellent dividend (which was increased 11%), backed by a payout ratio under 50% of cash flow. We would buy this with a stop loss at $78.50, looking to achieve $114 -- upside potential over 33%. Yield 4.33% (Analysts’ price target is $113.71)
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PAST TOP PICK
(A Top Pick Dec 02/20, Up 30%) Cheapest among the big 6 banks. Good opportunity here. Reported numbers better than expected. Buying back shares. Latin American footprint will have greater organic growth than the other banks. Still buying it.
Brian MaddenOwned
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