For bank stocks, CIBC analyst ‘does not find the discount compelling’ as earnings estimate fall

News Snapshot:

Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow CIBC bank analyst Paul Holden is not excited about the prospects for domestic bank stocks, “Banks have rallied significantly since early November. The rally has been fueled by the peak rate narrative and expectations for a U.S. soft landing. The banks are now trading at a 5-per-cent discount to 5-year average P/Es [price-to-earnings], with consensus EPS reflecting a soft landing. We do not find the discount compelling considering potential downside risk to EPS if the Canadian economy does not perform so well next year. We...