RBC CM on the Financial Sector

RBC Capital Markets, 22 August 2006BanksOur positive call on the bank sector reflects our view that sector valuation became attractive as a result of the sector price weakness through to June combined with strength in the bond market, particularly in the last week. Our target P/E of 13.1x 2007E cash EPS assumes a 4.25% Canadian 10-year bond yield (the 10-year closed at 4.18% Monday). According to