Jefferies analyst John Aiken has maintained their bullish stance on RY stock, giving a Buy rating today.
John Aiken has given his Buy rating due to a combination of factors that highlight the Royal Bank of Canada’s potential for growth and profitability. The bank’s Investor Day presentations revealed a conservative approach to its profitability targets, suggesting that the actual outcomes could surpass expectations. The bank’s aim for a return on equity of over 16%, with a potential path to 17%, is supported by its strategic initiatives and operational efficiency improvements.
Moreover, the Royal Bank of Canada’s focus on leveraging Artificial Intelligence as a strategic advantage across its segments is expected to contribute significantly to its operations by 2027. Additionally, the anticipated synergies from the HSBC Canada acquisition and the ongoing turnaround at City National are expected to enhance profitability. These factors, combined with the bank’s scale and efficiency, position it for better-than-market growth, justifying the Buy rating.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a C$191.00 price target.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RY in relation to earlier this year.