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Research Alert: CFRA Keeps Buy Opinion On Shares Of Royal Bank Of Canada

BY MT Newswires | ECONOMIC | 08/27/25 11:15 AM EDT

11:15 AM EDT, 08/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by USD22 to USD180, 16.6x our FY 26 (Oct.) EPS view of CAD15.03 (USD10.85), a wider risk premium than the peer average of 12.0x given its scale and superior earnings profile. We raise our FY 25 EPS to CAD14.03 from CAD13.52 and FY 26's to CAD15.03 from CAD14.64. Coming into the quarter, we had strong confidence that RY would meet its 16%+ ROE target, but the bank's excellent execution has exceeded our expectations. We now view achieving this target as highly probable and believe a sustainable 17%+ ROE is within reach. Importantly, credit concerns for the quarter proved unfounded, as tariff uncertainties did not translate into higher default rates. Meanwhile, City National's turnaround continues to gain momentum, with net income jumping to USD139 million compared to USD77 million in the prior-year period. As it has moved past its defensive phase, City National is now actively expanding by recruiting new bankers and pursuing client growth opportunities.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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