In a new report, Credit Suisse analyst Kevin Choquette explains why he believes now is a perfect time to be buying Canadian bank stocks. Choquette feels that the current pricing of the banks reflects an overly negative market view.

Balanced economy

According to the report, Canada’s economy is not just about oil and is more balanced that many people realize. Choquette points out that 76 percent of Canada’s exports go to the US, which is experiencing a strong economic expansion relative to many other global economies. Credit Suisse believes that the market is discounting Canadian bank share prices due to weakness in crude oil, but it is ignoring structural improvements in revenue and loan mix, balance sheet strength and profitability.

Value

Canadian bank share prices have fallen…

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