Analyst Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on Royal Bank Of Canada and increased the price target to C$227.00 from C$194.00.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight the Royal Bank of Canada’s strong financial performance and promising outlook. The bank’s impressive third-quarter results, along with optimistic projections for growth and profitability, suggest a favorable trajectory that could attract more investor interest. Poonawala emphasizes the bank’s superior return on equity (ROE) compared to its peers, which is expected to be several hundred basis points higher, thereby reinforcing the sustainability of its premium price-to-book (P/B) multiple.
Additionally, the Royal Bank of Canada’s robust capital generation and diversified revenue mix contribute to its strong execution capabilities. The bank’s earnings per share (EPS) growth forecast and stable capital ratios further support the potential for a widening price-to-earnings (P/E) valuation. These factors, combined with the bank’s strategic approach to potential acquisitions, underpin Poonawala’s confidence in maintaining a Buy rating for the stock.
Poonawala covers the Financial sector, focusing on stocks such as Goldman Sachs Group, BNY, and Citigroup. According to TipRanks, Poonawala has an average return of 14.5% and a 73.71% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a C$203.00 price target.