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 Apr 15/21, Up 19%) Likes the scale and diversity across its different businesses. One of her favourite banks. Nice core holding for income.
Christine PooleOwned
banks
BUY ON WEAKNESS
RY vs. BNS Broadly, Canadian banks are all driven by the consumer and mortgage market. RY is the premier name in Canada, he owns it at full weight, no plans to sell, not buying for new clients until there's a pullback. Canadian franchise is solid, great capital markets business, good long-term. Forays into US appear solid. One of the lower dividend yields in the space. BNS has one of the highest yields, more focused in Latin America, recent Chilean acquisition still TBD. He owns a small position. His other preference is TD. He's not adding to any of the banks, waiting to see how market digests rate increases and hoping for a market pullback.
Ryan BushellOwned
banks
BUY
Canadian banks exposure to Russian financial system is low.
Company is well positioned for rising interest rates.
One of his largest holdings.
Pays an attractive dividend yield.
Good investment opportunity,
Michael SprungOwned
banks
BUY
Canadian banking in general is good for the long term. Great businesses. One of the best retail franchises in Canada. Large investment banking division that's probably in the top 10 of global investment banks, which adds volatility to earnings. Big spend on asset management globally. At 1.9x earnings, more expensive than the others. He's buying it here. Yield is 3.4%.
Paul Harris, CFAOwned
banks
WEAK BUY
He prefers TD and NA. Banks are flip-flopping right now, based on interest rates and uncertainties about the global banking system. Terrific performance this year. Well run. Lots of capital, so he expects more share buybacks, dividend hikes, and surprise acquisitions.
Barry SchwartzOwned
banks
HOLD
Really likes, but not buying right now as bank valuations have come up significantly. Be patient. The group trades about 12x earnings, which is reasonable. Great income stock. Don't sell if you own it. Reasonable growth profile. Releasing excess capital and buying back shares.
Chris BlumasOwned
banks
BUY
She likes Canadian banks. PEs have climbed from last year, but still reasonable. Royal and TD are her top banks. Likes RY for their diversity and scale. Both banks yield around 3.5% and will continue to raise them as earnings grow.
Christine PooleOwned
banks
BUY
Rising interest rates will improve net interest margins (spread between mortgages issued and deposits taken).
Dividend increases have occurred across the industry.
Well diversified business that has operations in USA + globally.
Avoid buying too many banking stocks as exposes investor to sector risk.
banks
HOLD
Canadian banking sector has been a great place to be, oligopoly. "Hates" being a customer, but loves being an owner. All in excellent shape. The sector has been a core holding in his Canadian strategy.
Lorne SteinbergOwned
banks
COMMENT
If inflation and rising interest rates leads to a steeper environment, then yes, it will be positive. If Feds make a policy mistake and the yield curve flattens, it will be negative. The steeper the yield curve, the more profitable it is for banks. In the back half of next year, there is a risk of economic slowdown.
HOLD
He owns TD and RY right now. Setup is interesting. OSFI recently released the handcuffs on dividends and share buybacks. Usually banks do well at the beginning of a tightening cycle. We're in a tremendously over-leveraged economy. As we go along, and rates rise, banks on the other side of this credit cycle might have a tough time. He's as underweight banks as he's ever been. TD and RY are still great franchises, but he's not that excited about the banks. They can go higher, but you have to evaluate the risks of the credit cycle.
Bryden TeichOwned
banks
TOP PICK
Likes the whole Canadian banking sector, with net interest margins expanding. Interest rates in Canada may rise sooner than in US. Credit environment is favourable. Increasing dividends is on the menu, and she expects double digit increases, though it may not happen all at once. Diversified businesses. Yield is 3.26%. (Analysts’ price target is $143.82)
Christine PooleOwned
banks
TOP PICK
Dominant personal and commercial banking in Canada, and a meaningful position in the US. Top 10 in the global capital markets business. Well diversified by line of business and geography. Leader in digital and AI, which is driving organic growth. Highly visible path to double digit total returns. Yield is 3.30%, growing at 7% a year. (Analysts’ price target is $143.22)
Brian MaddenOwned
banks
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20scale(-1,%201)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
