Update shared on 20 Nov 2025
Fair value Increased 2.18%The analyst price target for National Bank of Canada has increased from C$151.69 to C$155.00. This change reflects analysts' improved outlook based on higher projected revenue growth and slightly elevated valuation expectations.
Analyst Commentary
Recent Street research reveals a mix of optimism and caution regarding National Bank of Canada. Analysts have updated their ratings and price targets, reflecting shifting expectations for the bank’s growth prospects and current valuation.
Bullish Takeaways- Bullish analysts have upgraded the stock and increased their price targets, signaling confidence in continued revenue growth and operational execution.
- Several price target increases reflect expectations for the bank to outperform peers. Some believe that consensus financial estimates remain conservative and could be exceeded if current trends continue.
- Upgrades to more positive ratings indicate a growing belief in the bank’s ability to deliver solid returns amid favorable market conditions.
- Higher target prices from multiple sources suggest an improved outlook for earnings and profitability, even as valuation multiples edge higher.
- Bearish analysts remain cautious, as evidenced by a recent price target reduction. This highlights concerns about potential headwinds or limited upside at current valuations.
- Some maintain neutral or sector perform ratings, indicating uncertainty about the pace of growth or the sustainability of recent positive momentum.
- Persistent conservatism in consensus estimates reflects broader market skepticism about the banking sector's ability to significantly outperform expectations in the near term.
What's in the News
- The Board of Directors of National Bank of Canada has authorized a buyback plan on August 27, 2025 (Key Developments).
- National Bank of Canada announced a share repurchase program, planning to repurchase up to 8,000,000 common shares, or 2.04% of its outstanding share capital. The repurchased shares will be cancelled, and the program is subject to regulatory approval. The issuer bid will terminate no later than September 24, 2026 (Key Developments).
- The bank will redeem all 500,000 Series 44 Preferred Shares held by NBC LRCN Limited Recourse Trust in connection with the redemption of Series 1 LRCNs. Payment to holders will be made on the next business day after November 15, 2025. This transaction is part of the ongoing management of the bank's regulatory capital and has been approved by the Office of the Superintendent of Financial Institutions (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen from CA$151.69 to CA$155.00, reflecting a modest increase in expected fair value.
- Discount Rate has increased slightly from 7.12% to 7.26%, which signals a marginal reassessment of risk in the current environment.
- Revenue Growth projections have improved, moving up from 10.04% to 10.21%.
- Net Profit Margin has edged down from 26.60% to 26.24%, indicating a slight contraction in expected profitability.
- Future P/E has increased from 20.93x to 21.66x. This suggests higher valuation multiples based on current earnings expectations.
Disclaimer
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