TSE:RY

Royal Bank (RY.TO)

288.01
-1.11 (0.38%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
1477 watching
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Investor Insights
star iconJun 27, 2026, 12:00 am

This summary was created by AI, based on 55 opinions in the last 12 months.

Royal Bank (RY-T) has been a strong performer, with a consensus appreciation for its stability, especially in its capital markets and wealth management divisions. Experts praise the bank's robust earnings, dividends that have grown consistently, and its strategic acquisition of HSBC Canada, which is expected to enhance its global platform. However, there are concerns regarding its current high valuation relative to historical standards and the overall Canadian banking sector, leading some to suggest trimming positions. While many maintain a positive outlook on RY due to its dominance and management quality, the general sentiment reflects caution against buying at elevated prices with potential headwinds from slowing loan growth and economic pressures.

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Consensus
Hold
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Valuation
Overvalued
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Similar
TD,TD
SELL
Done very well the last little while. It is in the period of seasonal strength that us end of October to today. Take profits Tuesday morning.
BUY
Very cheap stock right now. Unduly punished for mistakes it made 5 years ago by going into the US. Those mistakes are now behind it and he feels their results were quite strong. Have a terrific franchise, particularly on the investment side and the personal wealth management side. Pays a nice yield and dividends are due to go up.
BUY
Good entry point.
DON'T BUY
Not a big fan of the banks in general. Cdn banks are probably the highest quality banks globally, which is great, but a lot of money came into them and the valuations became high compared to other stocks and other banks outside of Canada. This one has been a disappointment and he doesn't see this changing soon.
BUY
We are coming into a $47-$48 range. There will be some significant resistance when it reaches $50. Probably due for a little bit of a pullback, maybe to $47 but it could be bought now. You'll have to be patient with it.
BUY ON WEAKNESS
He is light in the banks, only owns NA-T because they have the best balance sheet in North America. RY had trouble investing their money outside of Canada. This one is on their radar and they will own it at the right price. Wait before buying banks.
DON'T BUY
Feels there is a lot of compression in the earnings of the stock and he doesn't see a major catalyst to any of the bank stocks going up a lot.
DON'T BUY
There is a lot of concern on how much 2nd party risks and contagion from Europe for all banks. Dividend is pretty stable and secure but what is a 5% dividend to stock is down 20%.
HOLD
Used to trade at a premium to all banks but is now trading at a discount to them. Thinks it will earn $4.50 this year and more next year. Trading at 10X earnings.
DON'T BUY
All Cdn banks have been pretty volatile sideways traders from around 2005. Considers that more as yield plays, not growth stories. In the short-term, they are being compressed on interest margins. There has also been a decline in consumer spending and mortgage lending has been flat. They could trade off a little more.
DON'T BUY
Expects they will hold their dividends. Management has said they have a lot of money but can't lend it to anyone, which means their margins are being squeezed. Earnings forecasts for 2012 have been literally falling like a stone. Would be much more interested at $36-$37.
DON'T BUY
Investors are not buying into their plans of increasing the business mix from capital markets activity, which can be a high return activity but very volatile.
WEAK BUY
For a long-term hold? Cdn banks trade globally at a premium to BV. Will be reporting very soon and he expects some weak trading numbers. They are now trying to make an international impact on the wealth management side of the business. Don't look for much growth over the next year. Expect dividends will be raised.
COMMENT
Cdn banks have 2 businesses, retail and investment. This bank closed their retail business in the US when it didn't work. The question is, how are they going to effectively reinvest all their excess cash. This will continue to plague them until there is some clarity.
COMMENT
Was his favourite bank stock for many years but switched to Toronto Dominion (TD-T) 2 years ago. Although they have the strongest historic management culture in Canada, TD made much better decisions about the US.
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