The Globe and Mail reports in its Friday edition that Jefferies analyst John Aiken started coverage of Canadian banks on Thursday, calling it "an inauspicious time, given the concerns that a potential recession could have on earnings and valuation." The Globe's David Leeder writes in the Eye On Equities column that Mr. Aiken says in a note: "We are quite positive on the outlook for the Canadian banks as we anticipate that the group will benefit from an economic recovery spurred on by interest rate cuts by the Bank of Canada improving both household and business sentiment. However, our enthusiasm is tempered in the near term as we anticipate that the domestic economy will be in, or close to, a recession through the first half of the year. This will fuel concerns of outsized credit losses and dampened loan growth, creating share price volatility." Mr. Aiken continues to rate Royal Bank of Canada "outperform," with a $138 share target. Analysts on average target the shares at $140.54. Mr. Aiken adds: "Despite its relative size, the HSBC Canada acquisition could be a game changer for RBC. However, with an even greater exposure to Canada, we see limited relative upside, given its deserved but already premium valuation."