Bank of Nova Scotia (TSE:BNS) Sets New 12-Month High After Analyst Upgrade

Bank of Nova Scotia, often referred to as Scotiabank, is the third-largest bank in Canada.

Bank of Nova Scotia (TSE:BNS), also known as Scotiabank, hit a new 12-month high on Monday after an analyst upgrade. The stock rose 2.2% to $90.51, its highest level since February 2022.

The upgrade came from Barclays, which raised its rating on Scotiabank to "overweight" from "equal weight."

Barclays analyst John Aiken said in a note to clients that he expects Scotiabank to benefit from rising interest rates. He also praised the bank's "strong execution" and "solid balance sheet."

Scotiabank's recent performance has been mixed. The bank reported a 10% increase in net income in its fiscal third quarter, which ended July 31. However, its provisions for credit losses increased by 50%.

Despite these challenges, analysts remain bullish on Scotiabank. The consensus rating on the stock is "buy," and the average price target is $95.00.

Here are some of the factors that could drive Scotiabank's stock higher in the coming months:

• Rising interest rates
• Strong execution
• Solid balance sheet

Investors should note that Scotiabank's stock is not without risk. The bank's exposure to the Canadian housing market could weigh on its performance if the market turns sour.

Overall, Scotiabank is a well-managed bank with a strong track record. The recent analyst upgrade is a positive sign for the stock, and it could continue to perform well in the coming months.