Barlow’s Research Roundup: Get used to expensive bank stocks, says Scotiabank analyst

Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow

Bank stocks to stay expensive

Scotiabank analyst Mike Rizvanovic warns investors to get used to expensive bank stocks,

“We continue to believe that higher valuation multiples for the large Canadian banks are here to stay, justified by the group’s strong fundamentals, which are driving a higher ROE, and supported by long-term structural improvements related to: (1) a much stronger regulatory capital base; (2) far superior credit underwriting; and, (3) a growing Capital Markets business that provides a countercyclical revenue boost in times of heightened volatility.…

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