BMO - CIBC turns positive on Canadian banks due to U.S. election results vaccine

CIBC analyst Paul Holden switches "from defense to offense" on that basis that consumer spending and capital investment will occur sooner as a result of President-elect Joe Biden's win and the brighter outlook for a COVID-19 vaccine."We are more bullish today on the outlook for loan growth and less concerned about tail risk," Holden wrote in a note.Upgrades Toronto-Dominion Bank (TD) and Bank of Montreal (BMO) to Outperformer from Neutral.Cuts Royal Bank of Canada (RY) and National Bank of Canada (NTIOF) (NTIFF) (NBKCF) to Neutral from Outperformer.The more positive U.S. outlook gives TD and BMO, in particular, the possibility of upward EPS revisions.See how Canadian banks' Quant factor grades:Also says: "This is more of a tactical call within our bigger-picture framework, which remains rooted in a lower-for-longer interest rate scenario."Canadian banks' total return has been lagging the S&P 500 for much of the past year:

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CIBC turns positive on Canadian banks due to U.S. election results, vaccine