“One of the most important questions facing Canadian bank investors right now is whether the Big Six banks will be able to hit their medium-term ROE guidance. Considering that only NA is currently delivering an above-target ROE, the answer would appear to be ‘no’. The market is clearly skeptical, with even consensus ROE expectations for NA coming in below the bank’s official target in both F2025 and F2026 .
“Uranium Preferred: Pricing was strong to start the year and has since been volatile but resilient. We have increased our 2024E term price by 8% to $79/lb, and we now expect $90/lb and $95/lb in 2025 and 2026, respectively, compared to $80/lb for both, prior … Improved Copper Outlook: Our copper price forecast for 2024-2025-2026 improves by 10%, 6%, and 12%, respectively, and we have increased our long-term price to $4.00/lb, from $3.
Mr. Adams raised his price target on Cameco Corp. from $74 to $80, Capstone Copper from $10.50 to $12, First Quantum Minerals from $15 to $18, Hudbay Minerals to $15.50 from $14.50 and Lundin Mining from $15 to $16.BofA Securities investment strategist Michael Hartnett’s weekly report was blunt and pithy as always,
“Zeitgeist I: “With your FMS hard landing probability down to 5%, aren’t you kinda meant to buy the long bond here.” Zeitgeist II: “My biggest worry is a sweep in the US election & a Liz Truss moment.
“WTI prices have enjoyed a 12% rally since their early June lows, closing yesterday at US$82/bbl. Breaching back above the US$80/bbl threshold was key in our view to remove some negative revision potential from Energy stocks. As shown in the upper Chart of the Day, sell-side had been ramping up their consensus WTI levels used in their models to US$80/bbl. Hence, the early June plunge was concerning for their earnings outlook.