Scotiabank falls after BofA downgrades to 'neutral'

Canadian lender Scotiabank's BNS.TO shares fall as much as 2.1%; last down 1.1% to C$67.58

BofA Global Research downgrades company's shares to "neutral" from "buy" given worsening economic outlook and the bank's exposure to Mexico

BofA Economics earlier this month downgraded the outlook for Mexico's economy, noting the country is "likely in a technical recession"

Brokerage's meetings with "Big Six" banks' management teams last week indicated stalled customer activity and expectations for higher rainy-day funds

BofA believes a truce on U.S. tariffs could jumpstart customer activity into late 2025 and into 2026

4 of 15 brokerages rate the stock "buy" or higher, 9 "hold" and 2 "sell"; median PT C$79, according to data compiled by LSEG

As of last close, Scotiabank's shares down 11.4% YTD