CIBC(US:CM) Financialpost·2026-02-13 22:40Core Viewpoint - Canada's Big Banks are expected to report fourth-quarter results at the end of the month, with analysts expressing caution over stock valuations, which appear stretched compared to historical trends [1] Group 1: Earnings and Performance - The Big Six Canadian banks outperformed U.S. mega-banks and domestic life insurers last year despite a weaker economic outlook and a trade pact review [1] - Analysts at TD Cowen noted that the Big Six are trading at an 18% premium and are approaching full value territory [1] - The stocks are trading at a one-year forward earnings per share of 14.3 times based on 2026 consensus, significantly above the 25-year trend of 10 to 12 times [1] Group 2: Analyst Insights - Despite stretched valuations, TD Cowen analysts believe strong fundamentals, including net interest income, improving U.S. loan growth, and strong trading revenue, will support the sector in the near term [1] - TD Cowen raised price targets for four of the five Big Six banks, with specific adjustments for Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, and Royal Bank of Canada [1] Group 3: Price Targets and Recommendations - Bank of Montreal's target rose from $219 to $209, Bank of Nova Scotia from $104 to $112, Canadian Imperial Bank of Commerce from $134 to $142, National Bank of Canada was cut to $175 from $181, and Royal Bank of Canada from $246 to $260 [1] - TD's top bank picks are Bank of Montreal and Royal Bank of Canada due to their extensive U.S. capital markets operations [1]