Jefferies Says Canadian Bank Stocks Are Too Rich After 66% Run
Updated
Updated · Bloomberg · Jul 8
Jefferies Says Canadian Bank Stocks Are Too Rich After 66% Run
1 articles · Updated · Bloomberg · Jul 8
Summary
Canadian bank stocks have fully priced in future growth after a 66% rally, Jefferies said, arguing the sector is running out of upside.
15.3 times projected 12-month earnings is the group’s current average valuation, according to analyst John Aiken, putting the sector 50% above its historical average.
That multiple also tops the previous peak of 13.5 reached in February 2006, underscoring how far valuations have stretched versus past cycles.