Q: Hello team,
What is your view on Canadian Banks at this point? The PE ratios seem to be on the high side according to yahoo.. Also, can you comment on Descartes Systems earnings .. the outlook does not seem to be positive given potential tariffs that could be slapped on with new administration.. is it still a buy? Thanks very much
What is your view on Canadian Banks at this point? The PE ratios seem to be on the high side according to yahoo.. Also, can you comment on Descartes Systems earnings .. the outlook does not seem to be positive given potential tariffs that could be slapped on with new administration.. is it still a buy? Thanks very much
5i Research Answer:
Banks are reporting this week and results are leaning to the positive, and we have seen some dividend hikes as well. We would not consider them too expensive considering the rate and economic outlook. TD and BNS in particular 'cheap', whereas RY is on the higher side of valuation due to its continued strong execution (again with good numbers today).
DSG comments are posted; we would remain comfortable buyers. Tariffs may impact its customers more, and could be a positive if complexity increases across supply chains in general.