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Investor Insights

This summary was created by AI, based on 10 opinions in the last 12 months.

The experts' reviews on Canadian Western Bank (CWB-T) indicate a mixed sentiment. Some are positive about the potential acquisition by National Bank and see it as a good thing for CWB, while others caution about the risks involved in the deal and suggest considering other options in the banking sector due to CWB's energy sector exposure and operational inefficiency. Overall, the stock seems to be generating some interest due to the potential acquisition and the differences in its operation compared to other Canadian banks.

Consensus
Mixed
Valuation
Fair Value
COMMENT

National Bank is buying it. Price of shares of CWB has risen because of National's performance. NA is paying more than fair value for CWB. Is confident the deal will happen.

banks
DON'T BUY
Buy, as a way to get National Bank?

What the caller's really asking is could this be an arbitrage opportunity to back-door his way into NA? Yes, but there's risk that the government doesn't allow the deal. Deal could fall apart. Then CWB would go back to $27. Unless you also short NA, you could really get slaughtered.

He'd never recommend a retail investor ever do anything crazy like that. If you really want to own NA, buy that stock instead.

banks
HOLD
Sell now, or wait for acquisition?

Under regulatory scrutiny, but likelihood of transaction going through is pretty high, though of course not guaranteed. The acquisition makes a lot of sense for expanding NA's footprint. No other player likely to step in.

If you're worried, you could sell and redeploy proceeds elsewhere in the sector. Look at RY or even TD.

banks
BUY

He's very happy to hold up. He sees 25% upside. The merger was a good thing. He expects the merger by BNS to be approved and will benefit both. The differential between the two stocks points to approval.

banks
HOLD
With the takeover, sell now or wait?

Don't forget it's a share swap, so shares will trade in line with NA shares. NA shares are down, because it's raising a bunch of money to pay for the acquisition. Consider yourself lucky, as you're doubling your money from yesterday. 

He'd hold on, accept the NA shares, hold onto those shares, and you'll do extremely well. 

banks
PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Regional banks are having a tough time competing with well-established big banks in general due to their inferior scale and less famous brand recognition. CWB is trading at a cheap valuation of only 0.7x Price/Book, but operational efficiency is not as good as the high-quality operators in the banking industry. Return on equity was around the 10% range in the last few years, which is quite weak relative to the large banks, while net margin is also lower than large banks. CWB could be an interesting value name once in a while, but we think it makes more sense to hold high-quality, more efficient banks in the long term. CWB does have energy sector exposure, which is both good and bad depending on the cycle. But for an income stock, we prefer the safety of the larger banks. We would prefer RY or TD.
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banks
COMMENT

If you're looking for a bank stock go with something bigger. If looking for more growth you should do better with some of the non-bank lenders, 

banks
PAST TOP PICK
(A Top Pick Dec 18/23, Down 6%)

Testing breakout and trendline. Small position. Will leg in more as it proves itself.

banks
DON'T BUY

She is underweight banks but owns several of the large ones. The smaller banks like Canadian Western carry more risk than the larger ones and face pressure from investors who can get better rates from high interest savings, money market funds, etc.

banks
TOP PICK

Likes this bank because it is run differently than other Canadian banks (more energy clients). Fundamentals of bank look good. Technical aspects of chart look great. Believes stock could hit $40. Will continue to hold. 

banks
HOLD

Fate of energy sector directly impacts success of company.
High exposure to energy industry through lending.
Does not own shares - too risky.
Large Canadian banks better for defensive investors.

banks
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $0.88 beat estimates of $0.8209 and revenues of $283.51M beat estimates of $276.84M. Net income available to shareholders was $83M, an increase of 19% compared to the prior quarter. Management noted its strong financial results were driven by branch-raised deposit growth, improved sales, and discipline on managing expenses. Its annual loan growth of 6% led net interest income higher by 5%, and overall the market was pleased with these results. Management expects mid single-digit percentage growth in loans and low single-digital percentage growth in branch-raised deposits growth for FY2023. There are some concerns on the economy ahead from management, however, it believes its prudent lending approach and expense management will help to offset some of this weakness. Overall this was a decent quarter for the company.
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banks
PAST TOP PICK
(A Top Pick Jun 13/22, Down 7%)

Very cheap. Strong balance sheet, decent yield, very nice upside potential. The West is coming back thanks to oil. Banks in general have been under pressure to raise more reserves. Rising interest rates are mixed for the banks. 

banks
Unspecified

It is down and bouncing around within a band range. He is not sure about the details of the company but the dividend is reasonably safe. It may be good for a long term investor but there are others which may be better quality.

banks
DON'T BUY

Largely a regional bank. Reasonable-sized commercial business outside Western Canada. Prefers the bigger banks, with their diversification by line of business and geography. Applauds its efforts to grow, but banking is increasingly a business where size and scale gives the big players an advantage.

banks
Showing 1 to 15 of 244 entries

Canadian Western Bank(CWB-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 7

Stockchase rating for Canadian Western Bank is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Canadian Western Bank(CWB-T) Frequently Asked Questions

What is Canadian Western Bank stock symbol?

Canadian Western Bank is a Canadian stock, trading under the symbol CWB-T on the Toronto Stock Exchange (CWB-CT). It is usually referred to as TSX:CWB or CWB-T

Is Canadian Western Bank a buy or a sell?

In the last year, 7 stock analysts published opinions about CWB-T. 3 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Canadian Western Bank.

Is Canadian Western Bank a good investment or a top pick?

Canadian Western Bank was recommended as a Top Pick by on . Read the latest stock experts ratings for Canadian Western Bank.

Why is Canadian Western Bank stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Canadian Western Bank worth watching?

7 stock analysts on Stockchase covered Canadian Western Bank In the last year. It is a trending stock that is worth watching.

What is Canadian Western Bank stock price?

On 2024-12-10, Canadian Western Bank (CWB-T) stock closed at a price of $57.93.