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

02:15 PM EST, 02/26/2026 (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 USD23 to USD223, 17.4x our FY 27 (Oct.) EPS view of CAD17.55 (USD12.81), 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 CAD16.10 from CAD15.25 and increase FY 27's to CAD17.55 from CAD16.85. While gross impaired loans (GILs) increased Y/Y in Q1, we've been encouraged by RY's performance since Liberation Day, as GILs have declined sequentially for two consecutive quarters. In the event of a Canadian recession, we expect RY's defensive positioning and diversified revenue streams to drive outperformance relative to peers. RY continues to outexecute the competition, with its adjusted ROE of 17.8% in Q1 2026 significantly exceeding many underperforming peers. The U.S. business, which has been a weak spot in recent years, is showing substantial improvement as turnaround efforts gain traction. To that point, City National's net income more than doubled Y/Y to USD143 million from USD60 million.

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