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Analyst Roundup: BNS Upgraded as Canadian Tech Sector Shows Resilience
Finance · Major Banks · globe_inside_market · 2026-08-26
BNS, ATD, SHOP, CSU, KXS, CLS, BMO, TXCX
National Bank Financial upgrades Bank of Nova Scotia following strong quarterly results, while RBC analysts maintain a positive outlook on Canadian technology stocks.
What Happened
Bank of Nova Scotia Upgrade: National Bank Financial analyst Gabriel Dechaine upgraded Bank of Nova Scotia (BNS) to "outperform" from "sector perform," raising the price target to $142. The upgrade follows a strong third-quarter performance where the bank exceeded earnings expectations, driven by robust capital markets revenue and improved credit quality.
Couche-Tard Outlook: RBC Dominion Securities analyst Irene Nattel maintained an "outperform" rating on Alimentation Couche-Tard (ATD) despite lowering some forecasts due to softer consumer demand. Nattel views the current share price as an attractive entry point, highlighting the potential for growth through the company's "Core+More" strategy and the pending Żabka acquisition.
Canadian Tech Sector Performance: RBC analyst Paul Treiber noted that the Canadian technology sector is showing signs of recovery, with healthy fundamentals and valuations near multi-year lows. Despite a recent rally, the sector continues to lag behind broader market indices, suggesting potential for further gains as companies report strong revenue beats and rising profitability expectations.
Top Tech Picks and Bank of Montreal: Treiber identified Shopify, Constellation Software, Kinaxis, and Celestica as his top picks, citing strong growth catalysts and resilient demand. Meanwhile, National Bank adjusted its target for Bank of Montreal (BMO) to $271, citing potential margin compression as loan growth outpaces deposit growth.