National Bank of Canada: Most Domestic-Focused Bank Among Big Six Canadian Peers; Shares Overvalued

After taking a fresh look at National Bank of Canada, we are increasing our fair value estimate to CAD 110 from CAD 109. We maintain our narrow moat rating and Standard Capital Allocation Rating. We are increasing the bank’s Morningstar Uncertainty Rating to Medium from Low given its exposure to the Canadian housing market and uncertainty related to US-Canada tariffs. We view shares as overvalued.