Sohrab Movahedi, an analyst from BMO Capital, maintained the Buy rating on Royal Bank Of Canada. The associated price target was raised to C$203.00.
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Sohrab Movahedi 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’s earnings per share significantly exceeded expectations, driven by robust results in Personal Banking and Capital Markets. This was attributed to better-than-expected net interest margins, loan growth, and trading revenues, which collectively contributed to a strong return on equity.
Additionally, the Royal Bank of Canada maintains healthy capital levels, with a CET1 ratio of 13.2%, and has demonstrated strong internal capital generation. The bank’s strategic acquisition of HSBC Canada further strengthens its leadership in Canadian Banking, positioning it well for future growth. The anticipated rebound in market-related activities is expected to benefit its Wealth Management and Capital Markets divisions, supporting a premium multiple and peer-leading growth in return on equity and earnings per share.
Movahedi covers the Financial sector, focusing on stocks such as National Bank of Canada, Bank Of Nova Scotia, and Brookfield Corporation. According to TipRanks, Movahedi has an average return of 10.9% and a 63.91% 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.