Canaccord Financial Inc., Canada’s largest non-bank brokerage, fell the most in five months after a Bank of Nova Scotia analyst downgraded the shares.
Canaccord fell 5.6 percent to C$7.21 at 4 p.m. in Toronto. It was the biggest one-day drop since Aug. 2, taking the stock down 11 percent in the past 12 months. About 164,000 shares changed hands, below the three-month daily average.
Phil Hardie, an analyst at Scotiabank Global Banking and Markets, downgraded the shares of Toronto-based Canaccord to sector perform, the equivalent of a hold after a surge of about 54 percent since the end of August through yesterday.
Hardie, the No. 1-ranked analyst on the stock according to the Bloomberg Absolute Return Rank, raised his target to C$8.75 a share in a note to clients while recommending “investors take profits into what its likely to be a strong earnings result.”
Canaccord will post results for its fiscal third quarter on Feb. 6. The brokerage posted its third straight quarterly loss in November as it absorbed costs from closing wealth-management offices as equity-trading volumes slumped.
Canaccord is expected to earn 15 cents a share in the third quarter, the average estimate of three analysts polled by Bloomberg. That compares to 1 cent a share in the previous period.
Scott Davidson, a Canaccord spokesman, declined to comment on the stock decrease.