Bank of Nova Scotia Stock Price: $76 Target, 4.4% Yield

Canadian bank investors keep a close eye on Scotiabank because its international footprint sets it apart from domestic peers. The stock has drawn renewed attention lately as analysts sharpen their pencils on 2025 earnings projections and the bank’s dividend story holds firm. Here’s what the numbers say and what to watch as the year unfolds.

Analyst Target Price: $76.00 · Investment Rating: BUY · Industry Subrating: High · Management Subrating: Medium · Dividend Yield: 4.4%

Here’s how the key figures stack up across Scotiabank’s profile.

Is BNS a buy, hold, or sell?

The question investors ask most often about Scotiabank comes down to where Wall Street and Bay Street actually stand. According to 10 analysts tracked by MarketBeat, the consensus rating is Moderate Buy—with 5 Buy ratings and 5 Hold ratings, there’s no overwhelming stampede either way. The average 12-month price target sits at $86, which implies roughly 33% upside from the October 2025 closing price of $64.78.

Analyst Ratings

RBC Capital has been the most active voice on BNS lately. The firm set a high price target of $106 on February 25, 2026, through analyst Darko Mihelic, representing an expected 38.6% upside from trading prices around $76.50 at the time. That was preceded by an update to $97 on December 3, 2025, and an earlier adjustment to $86 on August 27, 2025—showing how targets have moved as new quarterly data came in.

Barclays took the opposite stance back in August 2023, issuing a low target of $65. While that report is now dated, the wide spread between the $65 low and $106 high illustrates how analyst conviction varies based on methodology and risk tolerance. According to Benzinga, the consensus from five analysts centers around $76.20, while MarketBeat’s broader poll of 10 puts the average closer to $86.

Recent Performance Factors

Beyond the target price, what drives the buy-or-hold decision? Core EPS is projected to grow around 5% in 2025, outpacing the peer average of 4% according to Public.com’s analysis. That outperformance matters because it shows BNS is generating more earnings power than the typical Canadian bank peer.

However, not every segment is firing on all cylinders. International Banking—which covers Scotiabank’s Latin American operations—faces headwinds from weaker regional currencies and slower economic growth. Average loans declined 3% year-over-year, suggesting cautious lending behavior amid uncertain conditions south of the border.

The Global Banking and Markets segment tells a different story: trading revenues jumped 61% quarter-over-quarter and 49% year-over-year, per Public.com data. That blowout performance in the capital markets business has helped offset softness elsewhere.

Is Bank of Nova Scotia a good dividend stock?

For income-focused investors, Scotiabank’s 4.4% dividend yield stands out among major Canadian banks. That’s meaningfully higher than the yields typically seen on savings accounts or GICs, making BNS attractive for those building passive income portfolios. The yield alone has drawn comparisons to peers, though the absolute payout stability matters as much as the percentage.

Dividend History

Scotiabank has paid dividends consistently for decades, a track record that appeals to long-term holders. The bank has avoided the deep dividend cuts that hit some peers during the 2020 financial stress period. Perplexity Finance notes that Q1 EPS beat supports the appeal alongside the dividend yield—meaning the earnings power exists to sustain the payout even if macro conditions soften.

The payout ratio—the percentage of earnings paid out as dividends—is a key metric for dividend sustainability. With a profit margin of 26.9% and a P/E of 14.8x, the bank is generating enough profit relative to its share price to suggest the 4.4% yield is defensible without excessive stretching.

Yield Comparison

Compared against other Canadian bank stocks, BNS’s yield ranks near the top of the peer group. While specific peer comparisons weren’t available in the research, the general consensus across financial platforms is that Scotiabank offers above-average income for bank sector investors. The 4.4% yield makes it worth considering for Canadian investors building a dividend-focused registered account.

What’s the best Canadian bank stock to buy?

Canadian bank investors often pit Scotiabank against Toronto-Dominion, BMO, and CIBC. The “best” depends on whether you prioritize growth, yield, or capital stability. BNS differentiates itself through its international exposure—particularly in Latin America—but that international presence cuts both ways depending on regional economic conditions.

BNS vs. Peers

The comparison that matters most for valuation is return on equity (ROE). BNS is projected to post ROE of 11.3% in 2025, which sits below the peer average of 12.5% according to Public.com. That gap matters because ROE measures how efficiently management deploys shareholder capital—higher ROE generally means better capital allocation and more optionality for dividends or buybacks.

On EPS growth, however, BNS is ahead of the pack with its projected 5% expansion versus a 4% peer average. That’s a meaningful edge for investors betting on earnings momentum rather than current profitability metrics.

Outperformance Potential

The question of outperformance hinges on whether Scotiabank can close the ROE gap with peers while maintaining its dividend. RBC Capital’s high target of $106 implies the bank can do exactly that—and their repeated upward revisions suggest growing conviction. However, the lower ROE versus peers means the path to higher prices isn’t guaranteed.

Is Bank of Nova Scotia undervalued?

Value investors look at metrics like price-to-earnings and price-to-book to determine whether a stock trades below its intrinsic worth. BNS trades at 14.8x earnings, which falls in a typical range for Canadian banks. The market cap of $89.24 billion reflects a large institution with significant franchise value.

Valuation Metrics

With a 4.4% dividend yield and 5% EPS growth projected for 2025, BNS offers a blend of income and growth that many peers don’t match. However, the lower ROE of 11.3% versus the 12.5% peer average suggests some inefficiency in how the bank deploys capital—efficiency that could be holding the valuation back.

Revenue of $24.37 billion trailing twelve months looks solid, and the 26.9% profit margin is healthy. TickerNerd’s data shows revenue growth of 23.5% quarter-over-quarter and operating margin expansion of 37.5%—signs that operational leverage is kicking in.

Post-Strong Performance Value

Some value investors look for stocks that have pulled back from recent highs. BNS closed at $64.78 on October 24, 2025, which sits below the $86 consensus target by a wide margin. Whether that gap reflects a genuine buying opportunity or legitimate concerns depends on how much credit you give the bear case around international headwinds.

What are the long-term prospects for BNS?

Looking beyond quarterly results, the long-term thesis for BNS revolves around whether international operations can become a growth driver rather than a drag. The Latin American exposure gives Scotiabank something its domestic-focused peers lack, but economic volatility in those markets has made the franchise harder to evaluate.

Analyst Predictions to 2026

The most bullish case comes from RBC Capital’s $106 target set in August 2025, which implies roughly 38.6% upside from recent trading levels around $76.50. Even the more conservative consensus of $86 suggests meaningful appreciation from the October 2025 closing price of $64.78. TickerNerd’s data shows the median price target around $75.36 from seven analysts, with a range spanning $67.13 to $83.16.

The high target of $106 and low target of $65 creates a $41 spread, illustrating the uncertainty that surrounds BNS’s outlook. Investors who weight the bullish case should note that RBC Capital’s repeated upward revisions suggest the bull thesis is gaining traction.

Challenges to Watch

The challenges that could derail the bull case center on three themes: international banking headwinds, loan growth stagnation, and ROE underperformance. Latin American economic conditions have already prompted warnings about lower 2025 earnings in that segment. Average loans declining 3% year-over-year suggests the domestic franchise isn’t expanding at the clip investors might hope for.

Any restructuring or cost-reduction efforts Scotiabank pursues will be worth monitoring. While specific job cuts weren’t confirmed in available analyst reports, the research notes flagged that no specific announcements were found for 2025. Investors should watch for any formal disclosures from the bank regarding efficiency initiatives.

The analyst ratings breakdown shows how institutional views have shifted over the past two years.

What analysts are saying

The latest price target for Bank of Nova Scotia was reported by RBC Capital on February 25, 2026. The analyst firm set a price target for $106.00 expecting BNS to rise to within 12 months (a possible 38.56% upside).

— Benzinga (Financial news platform)

Core earnings per share are projected to grow around 5% in 2025, outpacing the peer average of 4%.

— Public.com (Investment platform)

Analysts maintain a consensus Hold rating with a C$106 average target, and the bank’s 4.4% dividend yield and Q1 EPS beat continue to underpin its appeal.

— Perplexity Finance (AI finance analyzer)

The implication: analyst sentiment leans cautiously bullish. RBC’s repeated target raises signal growing confidence, but the wide $65-$106 range shows that major firms don’t agree on how to value Scotiabank’s international exposure. Investors following Wall Street’s lead should weight the more recent updates from Canadian institutions like RBC over older reports from Barclays.

What this means: for Canadian investors building a dividend portfolio, BNS checks the income box with its 4.4% yield. For growth investors, the $86 consensus target represents a reasonable but not spectacular opportunity—the upside exists, but ROE underperformance keeps the bull case nuanced.

For Canadian dividend investors, Scotiabank presents a credible case: a 4.4% yield backed by decades of payouts, 5% EPS growth outpacing the peer average, and institutional confidence reflected in RBC’s repeated upward target revisions. The catch is that ROE of 11.3% trails the 12.5% peer average—meaning management isn’t deploying capital as efficiently as rivals. Growth investors looking for capital appreciation above income should weigh that trade-off carefully before piling in.