Q: Hello, NA looks like a solid bank with good growth potential, especially after there CWB purchase, does today look like a good entry point for a long term hold ? If not, what would be a good entry point ? I am willing to entertain another big 6 bank if you feel I can do better.
5i Research Answer:
We like NA and they have been making strategic moves to help with their growth profile and they have been beaten up a bit more than some of the other banks. We think it makes a good complement to the larger Canadian banks and at 10X forward earnings and a 4% yield, we would be fine with NA at these levels.