{"id":365992,"date":"2010-02-26T09:44:00","date_gmt":"2010-02-26T14:44:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:400703"},"modified":"2010-02-26T09:44:00","modified_gmt":"2010-02-26T14:44:00","slug":"national-bank-upgraded","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/365992","title":{"rendered":"National Bank upgraded"},"content":{"rendered":"<p><a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=NA&amp;id=98567\" >National Bank of Canada<\/a> was upgraded from Sector Perform to Outperform by CI Capital Markets analyst Brad Smith after the bank reported better-than-expected <a href=\"http:\/\/www.nationalpost.com\/story.html?id=2611444\" >first quarter results<\/a>.<\/p>\n<p>Adjusted cash earnings per share of $1.55 were well ahead of his $1.36 estimate and consensus at $1.45. A 4% revenue shortfall, primarily due to lower trading revenues, was more than offset by an 8% lower-than-anticipated expense run after the $75-million penalty from the bank\u2019s ABCP involvement was excluded.<\/p>\n<p>The bank changed the way it measures risk-weighted assets during the quarter, which meant its Tier 1 capital ratio climbed to 12.5% from 10.7% at the end of the fourth quarter of 2009. Management confirmed that if recently proposed new capital rules are enacted as set out, the preliminary estimate of the impact on Tier 1 would be a reduction of 300 to 400 basis points.<\/p>\n<p>Despite beating his quarterly estimates by a healthy margin, Mr. Smith left his 2010 and 2011 full-year estimates unchanged. He told clients this is due to lingering uncertainty relating to the sustainability of National\u2019s reduced provisioning and expense efficiency levels.<\/p>\n<p>Nonetheless, the upside the analyst sees in the stock justified to upgrade. Mr. Smith\u2019s price target on National Bank shares is $65. <\/p>\n<p><a href=\"mailto:jratner@nationalpost.com\">Jonathan Ratner<\/a> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=400703\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Bank of Canada was upgraded from Sector Perform to Outperform by CI Capital Markets analyst Brad Smith after the bank reported better-than-expected first quarter results. Adjusted cash earnings per share of $1.55 were well ahead of his $1.36 estimate and consensus at $1.45. A 4% revenue shortfall, primarily due to lower trading revenues, was [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-365992","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/365992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=365992"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/365992\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=365992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=365992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=365992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}