CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by CAD25 to CAD330, 18.7x our FY 27 (Oct.) EPS view of CAD17.63, a wider risk premium than the peer average of 13.9x given its scale and superior earnings profile. We lower our FY 26 EPS to CAD16.04 from CAD16.10 but increase FY 27's to CAD17.63 from CAD17.55. As one of the world's top-performing banks, RY faces greater challenges in finding efficiency gains compared to its peers. Despite this, the bank has delivered an adjusted ROE above 17% (15.5% in FY 23-FY 24) for four consecutive quarters, demonstrating exceptional performance. In the U.S., City National's net income more than doubled in 1H FY 26 to USD270M, a significant improvement. RY's Capital Markets and Wealth Management segments are also performing well, each posting over 20% net income growth in Q2. Still, should economic conditions weaken, RY is well positioned to weather the downturn given its diversified revenue streams, robust capital, and proven track record of maneuvering through tough times.