Scotiabank strategists and bank analysts are turning bullish on the sector after earnings season. First, strategist Hugo Ste-Marie,
“We have been underweight Canadian Banks for quite some time now, but we believe time has come to review the space more positively. A better-than-expected reporting season, easing cycle and technical breakout support our optimism. While we clearly warm-up to the sector, investors have to be more selective than ever.
terms of the individual names, our top picks in order are CM, TD and RY. CIBC has been our favorite for some time now and delivered another sizable beat in Q3″RBC Capital Markets’ research department made a bunch of changes to their “Canadian Research Model Portfolio Best Ideas”, “The RBCCM Canadian Fundamental Equity Weighting Portfolio is set by a committee within the Canadian equity research department and represents a model portfolio built around our analysts’ best ideas, giving consideration to sector and stock -specific weightings in the S&P/TSX Composite Index.
The portfolio is now Rogers Communications Inc., TELUS Corporation, Canadian Tire Corporation, Dollarama Inc., Restaurant Brands International Inc. , Alimentation Couche-Tard Inc., Loblaw Companies Limited, ARC Resources Ltd., Canadian Natural Resources Limited , Enbridge Inc. , Keyera Corp., Pembina Pipeline Corporation, Suncor Energy Inc., Topaz Energy Corp, Tourmaline Oil corp., Brookfield Asset Management Ltd., Brookfield Corporation, CIBC, iA Financial Corporation Inc.