Analyst John Aiken believes the recent gains in P/E multiples for the group are unsustainable
Unless the yield curve steepens, Barclays thinks Canadian bank stocks are vulnerable to a pullback.
Analyst John Aiken believes the recent gains in P/E multiples for the group are unsustainable, because it comes at a time when the spread between Government of Canada 2-year and 10-year yields has narrowed.
“Without a steepening of the yield curve and a commensurate improving outlook for net interest margins, we would expect pressure on the banks’ multiples over the coming months,” he told clients.
Read the full article at: business.financialpost.com
