Analyst Matthew Lee of Canaccord Genuity maintained a Buy rating on Royal Bank Of Canada, retaining the price target of C$201.00.
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Matthew Lee has given his Buy rating due to a combination of factors that highlight the Royal Bank of Canada’s strong financial performance and growth potential. The bank reported an adjusted cash EPS that significantly exceeded both the consensus and internal estimates, indicating robust profitability. Additionally, revenue growth surpassed expectations, and the expense ratio was better than anticipated, showcasing efficient cost management.
Another factor contributing to the Buy rating is the bank’s solid credit performance, with total provisions for credit losses coming in below expectations. The Canadian banking segment showed impressive pre-tax pre-provision profit growth, driven by increased loan balances and deposits. Furthermore, the capital markets and wealth management divisions reported strong year-over-year growth, supported by higher lending revenue and fee-based client asset revenue. The bank’s capital position remains strong with a CET1 ratio slightly below expectations but still robust, reflecting effective capital management strategies.
According to TipRanks, Lee is a 5-star analyst with an average return of 14.7% and a 67.57% success rate. Lee covers the Financial sector, focusing on stocks such as Bank Of Montreal, Royal Bank Of Canada, and Bank Of Nova Scotia.
In another report released on August 20, CIBC also maintained a Buy rating on the stock with a C$195.00 price target.