In a report released today, Tal Lev from TD Cowen upgraded Royal Bank Of Canada to a Buy, with a price target of C$246.00.
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Tal Lev has given his Buy rating due to a combination of factors that highlight the Royal Bank of Canada’s strong financial performance and strategic positioning. The bank reported a robust quarter with significant top-line growth driven by active capital markets and exceptional operating leverage. The earnings per share significantly exceeded expectations, supported by stable credit outlooks, capital generation, and a strong buyback strategy.
Additionally, the Royal Bank of Canada is expected to benefit from synergies with HSBC, AI-related savings, and improved loan growth. The bank’s capital markets revenue rose impressively, and management remains optimistic about future capital market activities. Furthermore, the bank’s capital strength is evident with an increase in CET 1 and a raised dividend, alongside guidance for more buybacks. These factors, combined with improved operating leverage and a raised ROE guidance, underpin the upgrade to a Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a C$227.00 price target.
Based on the recent corporate insider activity of 69 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.