BofA analyst highlights Canadian bank stocks with upgrades and earnings outlook

BofA Securities analyst Ebrahim Poonawala expects Canadian banks to report modest Q4 earnings with slight increases in credit costs and stable net interest margins. He predicts a 7% year-over-year growth in earnings per share, up from 6% in Q3. Poonawala upgraded Scotiabank to a "Buy" rating, citing management's turnaround efforts and potential for improved returns on equity. He also highlighted Royal Bank of Canada as well-positioned for growth due to synergies from its acquisition of HSBC Canada. Citi economist Veronica Clark anticipates a 50 basis point rate cut by the Bank of Canada in December, despite stronger consumer prices. She notes that inflation increases were influenced by one-time property tax hikes.