TSE:RY

Royal Bank (RY.TO)

295.01
+1.34 (0.46%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
1479 watching
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Investor Insights
star iconJul 25, 2026, 12:00 am

This summary was created by AI, based on 58 opinions in the last 12 months.

Royal Bank (RY-T) remains a dominant player in the Canadian banking sector, benefitting from favorable market conditions and robust investments in capital markets and wealth management. Analysts highlight its strong performance, with significant growth in earnings and cash reserves, while expressing cautious optimism regarding future loan growth. Despite its premium valuation compared to historical averages, experts acknowledge the bank's quality and stability, especially amid a stable regulatory environment and a healthy consumer base. While some analysts recommend caution due to high valuations, many suggest holding or accumulating shares given the bank’s long-term prospects and consistent dividend increases.

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Consensus
Buy
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Valuation
Overvalued
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Similar
TD,TD
BUY

Among all the Big 6 banks, this would be his choice. Clean story, premium valuation (which is fine with him). Gold standard.

HOLD

His favourite, the 800-pound gorilla. The biggest, the baddest, and it dominates.

PARTIAL SELL

Banks were the second-best performer in 2025 globally. Now, he's trimming his Canadian banks based on valuations. Be careful if you're concentrated in Canadian banks.

WAIT

Banks in general have peaked but Royal Bank is a little different and is sort of at a base level. He holds TD and CIBC.  Long term banks are good but we are entering a pause period which could go for up to a year. He is not recommending buying banks now,

WEAK BUY

With Iran conflict, yield curve has gone a bit flat, so net interest margins aren't going to be as good. If the conflict persists, earnings will possibly decelerate. This name is best positioned for all that. Usually trades at 11% premium to peers, now 8%.

If you assume that the conflict gears down to more manageable levels, you could buy the banks here and this name is the best choice.

TOP PICK

Has done well, but pulled back a little, which makes it an opportunity. Is the largest Canadian bank, very diversified with strong wealth management, so somewhere defensive. Pays a 3% dividend, not the highest, but still good. They bought HSBC a few years ago. It trades at a premium to the group, but boasts a higher ROE.

(Analysts’ price target is $252.33)
PAST TOP PICK
(A Top Pick Aug 01/25, Up 27%)

(Note the shortish timeframe.)  HSBC acquisition and its global capabilities are starting to bear fruit. Looking to expand wealth management in Middle East and China, thereby improving its positioning.

BUY ON WEAKNESS

He'll get into banks again when prices are better. If the problems of GSY spread up the affluence chain, banks will have problems. Housing market is sloppy. Our economy is being bailed out by gold and oil prices. 

This is the class act you can buy and be fine over the long term.

BUY ON WEAKNESS

Revenues went up last quarter, but so did costs. Needs better loan growth to hit ROE targets. Shines in asset management and capital markets. As market stabilizes, lots of opportunity in IPOs and M&A.

BUY ON WEAKNESS

Always the gold standard if you're looking for a Canadian bank.

Disclosure:  His old employer.

BUY ON WEAKNESS
Canadian banking sector.

Outlook is favourable. He owns BMO, RY, and TD. All 3 had good earnings, with TD probably the best. But the other two were also strong.

Tight, well-regulated oligopoly. A need, not a want. Diversified by geography and line of business. Good line of sight through the cycle to high, single-digit rate of dividend growth. He's overweight the banks.

BUY ON WEAKNESS

Core holding, phenomenal name across all business segments. Outperformed the group. All that's reflected in the price, not cheap here. Interest rate cuts will support the consumer (lending, housing). Buy on weakness if you can get it.

Resolution on CUSMA will improve appetite to spend by consumers and businesses.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

RY is one of five Canadian banks who have partnered to create the Defense, Security, and Resilience Bank (DSRB) designed to provide funding to the Government of Canada's commitment to boost military spending.  We think the DSRB will create another avenue for business growth in the years to come.  It trades at 17x earnings, 2.6x book and supports a 16% ROE.  Cash reserves are being prudently used to retire debt and buy back shares.  Its dividend is backed by a payout ratio of 43% of cash flow.  We recommend setting a stop-loss at $220, looking to achieve $274 -- upside potential of 15%.  Yield 2.6%    

(Analysts’ price target is $237.45)
BUY

Is the top bank in Canada. Have been doing well in the US with investment banking.  Is up 31% the past year. Is the most expensive among Canadian banks but deserves that premium, but the sector valuation is reasonabe.

WEAK BUY
TD vs. RY

Her owns both. He doesn't wait for pullbacks. A year ago, he favoured TD because of the penalty imposed on them.  RY is trading at a full multiple, while TD is at a slight discount. He slightly favours TD. Also consider the other Canadian banks.

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