
RY Stock Forecast & Price Target
RY Analyst Ratings
Bulls say
Royal Bank of Canada (RBC) reported a robust Common Equity Tier 1 (CET1) ratio of 13.2%, indicating strong capital stability, alongside a dividend increase of approximately 4% to $1.48 per share. The bank achieved a core Return on Equity (ROE) of 16.4% and a year-over-year increase in Book Value per Share (BVPS) of 11%, highlighting its strong financial performance. Additionally, various segments, including insurance, commercial banking, and personal banking, all demonstrated significant earnings growth, contributing to a reported adjusted earnings per share (EPS) of $3.26, which reflects a 15% increase year-over-year.
Bears say
The Royal Bank of Canada faces a negative outlook primarily due to expected declines in net interest margins (NIM) and lower trading results, which may impact revenue growth. Additionally, rising provisions for credit losses (PCLs) and increasing operational expenses contribute to concerns regarding the bank's financial stability, along with underperformance in both Personal Banking and Commercial Banking segments. Furthermore, a significant decline in insurance revenue year-over-year further exacerbates the challenges facing the bank, suggesting that a reliance on book value and dividend yield may become necessary for valuation assessment.
This aggregate rating is based on analysts' research of Royal Bank of Canada and is not a guaranteed prediction by Public.com or investment advice.
RY Analyst Forecast & Price Prediction
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