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

12:45 PM EST, 12/03/2025 (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 USD20 to USD200, 18.3x our FY 26 (Oct.) EPS view of CAD15.25 (USD10.93), a wider risk premium than the peer average of 12.7x given its scale and superior earnings profile. We raise our FY 26 EPS to CAD15.25 from CAD15.03 and start FY 27's at CAD16.85. RY is executing at a high level. The bank's credit quality has outperformed industry peers since tariff-related concerns emerged in the spring, while both the Capital Markets and Wealth Management divisions continue to demonstrate strong execution. Most notably, RY is making significant progress in turning around its U.S. operations, with City National reporting net income of USD164 million in Q4 compared to USD91 million in the prior year. Given this strong performance across business lines, management raised its ROE target to 17%+ from the previous 16%+. However, with U.S. operations continuing to improve and expectations for further credit quality enhancements in the coming years, we believe an 18%+ ROE is now in the cards.

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