Barlow’s Research Roundup: BMO analyst likes this bank stock amid expensive sector valuations
BMO analyst Sohrab Movahedi advises selectivity in Canadian bank stocks due to high valuations, favoring RY for its strong return on equity and earnings outlook. Scotiabank analysts highlight AI-driven growth benefiting software firms like Datadog, Snowflake, and MongoDB, while maintaining a neutral stance on Elastic. BofA Securities upgraded Nutrien to Buy, citing potential fertilizer supply disruptions and rising prices linked to geopolitical risks in global trade routes.
- ▪BMO Capital Markets finds Canadian bank stocks expensive but favors RY due to sustainable ROE and earnings relative to valuation.
- ▪Scotiabank analysts identify Datadog, Snowflake, and MongoDB as key beneficiaries of AI-driven data center expansion and cloud growth.
- ▪BofA Securities upgraded Nutrien to Buy, citing geopolitical risks in global fertilizer trade and potential upside from supply constraints.
- ▪Goldman Sachs notes narrowing equity market breadth despite a record S&P 500, with the median stock still significantly below its peak.
- ▪A lost copy of the oldest-known English poem was discovered in a library in Rome, according to a post shared by Gizmodo.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow RY is top pickBMO Capital Markets analyst Sohrab Movahedi recommends investors be highly selective about domestic bank stocks,“Canadian bank stocks have had a strong start to the year and now trade at or near the upper end of their long-term valuation ranges—expensive in absolute and relative terms, but not without historical precedent. The current valuation premium is supported by accelerating earnings growth, improving ROEs, constructive Capital Markets momentum, and renewed global investor interest amid an encouraging Canadian macro backdrop.
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