Q: What do you think are the chances (if any) for a significant recovery in BNS in the next 6 months ?? Thanks Jim
5i Research Answer:
The new CEO has been in place just over a year, so is still setting his mark on the company. Lower interest rates could help here, but it comes down to execution and sentiment. Investors hate the bank right now, which can result in a bounce if anything positive happens. We have been wrong on this one, but it is at least up $8 from its low in October. It is 9X earnings. Six months though is too short to expect a 'significant' change.