BMO Capital analyst Sohrab Movahedi has reiterated their bullish stance on RY stock, giving a Buy rating today.
Sohrab Movahedi’s rating is based on the Royal Bank of Canada’s strategic initiatives and strong financial targets. The bank has set ambitious medium-term goals, including a 7%+ EPS growth and a 16%+ ROE, supported by a robust CET1 ratio and a consistent dividend payout. These targets are backed by a credible plan extending to 2027, which Movahedi finds convincing.
Furthermore, the Royal Bank of Canada is leveraging its scale and technology investments to expand its market share both in Canada and internationally, particularly in the U.S. and U.K. The bank’s focus on digital transformation and AI-driven client experiences is expected to enhance its competitive edge and profitability. Despite potential short-term risks from macroeconomic factors, the bank’s leadership in Canadian Banking and recent acquisitions position it well for future growth, justifying the Buy rating.
Movahedi covers the Financial sector, focusing on stocks such as Royal Bank Of Canada, National Bank of Canada, and Bank Of Nova Scotia. According to TipRanks, Movahedi has an average return of 8.1% and a 57.02% success rate on recommended stocks.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a C$191.00 price target.