How Recent Moves Are Rewriting the Story for National Bank of Canada

National Bank of Canada has recently caught the attention of analysts, prompting an in-depth review of its fair value and growth expectations. While the bank's estimated fair value remains steady at CA$151.69, subtle shifts in revenue projections and discount rates provide insight into the evolving outlook for investors. Stay tuned to discover how you can stay informed about these ongoing changes in the stock's narrative.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value National Bank of Canada.

What Wall Street Has Been Saying

Analyst coverage of National Bank of Canada has been active, with several firms recently updating their perspectives. Below are the key bullish and bearish takeaways from the latest research notes. These highlight both optimism and caution regarding the bank's valuation and future growth trajectory.

🐂 Bullish Takeaways

Scotiabank's latest update on October 10 reaffirms a strong outlook for National Bank of Canada. Analyst Mike Rizvanovic raised the price target to C$159 from C$150 while maintaining an Outperform rating. This upward revision underscores confidence in the bank's execution and ongoing growth momentum. Canaccord and Scotiabank both raised their price targets in August. Canaccord moved to C$149 and Scotiabank to C$147, reflecting continued recognition of the bank's stable financial performance and operational discipline. CIBC, while keeping a Neutral rating, also raised its price target to C$154. The firm noted that consensus estimates for Canadian banks remain conservative, suggesting potential for positive earnings surprises if execution remains strong. Across the updates, analysts rewarded the bank's steady cost control and transparency, indicating support for its valuation at current levels.

🐻 Bearish Takeaways

RBC Capital demonstrated a more cautious view in August by lowering its price target from C$152 to C$148 and keeping a Sector Perform rating. This signals reservations about upside potential from current levels and highlights lingering valuation concerns. Despite several upward revisions, both Canaccord and CIBC maintained Hold or Neutral ratings. This indicates that while growth prospects are acknowledged, near-term risks and the extent of upside may already be reflected in the stock price.

Overall, recent analyst commentary indicates a prevailing sense that National Bank of Canada is well-positioned with strong execution recognized by the majority of firms. However, a cautious tone persists among some analysts, particularly regarding valuation and the possibility that near-term gains are already anticipated by the market.

Story Continues

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!TSX:NA Community Fair Values as at Nov 2025

What's in the News

National Bank of Canada will redeem all 500,000 Series 44 Preferred Shares held by Computershare Trust Company of Canada, following the redemption of its Series 1 Limited Recourse Capital Notes. Holders are set to receive payout on the first business day after November 15, 2025. The Office of the Superintendent of Financial Institutions has granted approval for the redemption of the Series 44 Preferred Shares and Series 1 LRCNs. This supports National Bank of Canada's ongoing capital management strategy. The Board of Directors has authorized a new buyback plan, effective August 27, 2025. This is part of the bank's strategic initiatives. National Bank of Canada announced a share repurchase program that aims to buy back up to 8,000,000 common shares, representing 2.04% of its outstanding share capital. This normal course issuer bid will expire no later than September 24, 2026, pending regulatory approval. All repurchased shares are set to be cancelled.

How This Changes the Fair Value For National Bank of Canada

Fair Value remains unchanged at CA$151.69, indicating consistency in the bank's estimated intrinsic value. The discount rate has fallen slightly from 7.28% to 7.12%, reflecting a modest decrease in perceived risk or required return. Revenue growth estimates have decreased marginally, from 10.08% to 10.04%. Net profit margin has increased slightly, improving from 26.57% to 26.60%. The future P/E ratio has edged down from 21.03x to 20.93x.

🔔 Never Miss an Update: Follow The Narrative

Narratives offer a smarter, story-driven way to make investment decisions. A Narrative connects a company's real-world story to its financial forecasts and estimated fair value, going beyond the numbers to give everyday investors deeper insight. On Simply Wall St's Community page, millions use Narratives to track updated perspectives, compare fair value to current prices, and react quickly as new earnings or news emerge.

Head over to the original narrative for National Bank of Canada to stay on top of:

How successful integration of acquisitions and digital investments could drive operational efficiencies, revenue, and net margin growth. The role of expanding wealth management and commercial lending in broadening revenue sources and enhancing financial stability. The main risks, including limited geographic diversification and mounting competitive and macroeconomic pressures, that might impact future profitability and valuation.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NA.TO.

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