TSE:RY
Royal Bank (RY.TO)
270.60
-0.34 (0.13%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
1475 watching
Financials 
Technical Analysis 0
Investor Insights
Jun 5, 2026, 12:00 amThis summary was created by AI, based on 52 opinions in the last 12 months.
Royal Bank (RY) has received largely positive feedback from various analysts, positioning it as a strong player within the Canadian banking sector. The bank is praised for its diversified operations, strong capital markets presence, and significant wealth management capabilities. Analysts note an annual return on equity (ROE) of around 16% and have highlighted recent quarterly earnings that show an increase in net income and cash reserves. However, some experts express caution regarding its valuation, suggesting that while it remains a solid hold, there may be more attractive opportunities in the sector as the stock is trading at a premium. Overall, analysts recommend maintaining positions and viewing RY as a long-term investment, despite fluctuations and concerns about future growth in the Canadian economy.
Consensus
Buy
Valuation
Overvalued
Similar
TD,TDD
PAST TOP PICK
(A Top Pick Nov 16/21, Up 4%) Continues to hold stock (4% dividend yield).
Stock has outperformed market relative to peers in segment.
Diverse business with wealth management business etc.
Expecting dividend to increase slowly.
Will continue to hold shares.
Christine PooleOwned
banks
PAST TOP PICK
(A Top Pick Nov 03/21, Up 1%) Dividends are an important part of total return. Though it has a big footprint in the US, better positioned than big US money-centre banks to weather a credit cycle. Dominant wealth management will propel it to outperform Canadian peers in a downturn. Continues to buy.
Brian MaddenOwned
banks
TOP PICK
Banks will be somewhat sensitive to higher rates, but RY has a very diversified earnings base. Management's investing heavily in maintaining lead market share. Though not the best yield in the bunch, dividend very safe, and he expects increases. Safety in this market. Yield is 4.04%. (Analysts’ price target is $139.19)
Michael SprungOwned
banks
HOLD
Best in class. He's lightened up on financials. Valuations are compelling, but margin and loan growth will be stagnant. Banks don't do well in recessions. No tailwinds right now.
Paul Gardner, CFAOwned
banks
PAST TOP PICK
(A Top Pick Jul 07/22, Up 1%) He sold down in January, but added over the summer. If the market wants to give us a sale, he takes the sale.
Rick StuchberryOwned
banks
COMMENT
The question was on banks. Recent reports from Canadian banks were mixed but they are good blue chip stocks. Royal Bank has room to go higher next year. The Bank of Nova Scotia has better growth due to their exposure to emerging and Latin American markets which should have a better outlook for the second half of 2023.
banks
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly This bell weather Canadian chartered bank is a TOP PICK. This is the gold standard of assets during periods of uncertainty. The bank has been building reserves to protect against possible loan losses as the economy has slowed. However, its operating margins are improving, which lead to recent earnings beating analyst expectations. It trades at 11x earnings and under 2x book value. It pays a good dividend, backed by a payout ratio under 45% of earnings. We recommend placing a stop loss at $110, looking to achieve $145 -- upside potential over 15%. Yield 4.1% (Analysts’ price target is $143.27)
banks
HOLD
Has a big capital markets operation, as well as strong Canadian wealth management business. Owns and likes this and TD. But he is pausing a few months to see how the consumer does in Q4.
Ryan BushellOwned
banks
PAST TOP PICK
(A Top Pick Jul 20/21, Up 8%) Good to hold in the unstable environment we're in. Diversified earnings profile. Well managed. Yield slightly less than others, a bit under 4%. He'd hold. Not his first choice to buy today. He tends to be a long-term holder of the banks, unless there's a compelling reason to sell.
Michael SprungOwned
banks
TOP PICK
Fantastic compounder. 7th largest bank in the world. Formidable grower, both domestically and overseas. Big capital markets franchise. Dominant wealth and asset management franchise in Canada. Dividend has grown around 8% compound pace over a decade. Digital sophistication. Buy today comfortably. Yield is 4.16%. (Analysts’ price target is $144.04)
Brian MaddenOwned
banks
TOP PICK
Biggest, diversified, capital markets. Well managed. Asset management, which increasingly is the steady-eddy of cashflow. Could go back to its highs without difficulty. Yield is 4.02%. (Analysts’ price target is $144.02)
Rick StuchberryOwned
banks
BUY ON WEAKNESS
Core holding, though sometimes you want more or less exposure. In an economic slowdown, as he expects this year, you want to pare back. He owns RY, TD, BMO, and BAM.A. Each has unique aspects that make for good diversification within the sector. Pullbacks provide an opportune chance to buy, put them away, and collect some income. Strong, sustainable, competitive advantages. Strong compounders over time.
Brian MaddenOwned
banks
TOP PICK
Pays a 4% yield and banks are attractive for income. Banks are good for long term. They bought a small wealth management business from the UK. They raised their dividend 7% last quarter. They still have reserves they've built over time. There is talk of rising rates pressuring the housing market, but there remains a housing shortage in Canada and immigration flow into Canada will also fuel housing demand. So, the banks are well-positioned. Oil and base metals are thriving this year and are another tailwind for the Canadian ecnomy and banks (Analysts’ price target is $144.02)
Christine PooleOwned
banks
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