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
PAST TOP PICK
(A Top Pick May 5/09. Up 4.25%.) Callable Bond due in 2018 which should be called out in 2013.
BUY ON WEAKNESS
A little bit overvalued and banks could correct here. Overall he doesn't see any significant overall catalyst that is going to bring it down so wouldn't recommend a short position on it.
HOLD
(Market Call Minute) Best of the lot in it’s market place. Sees no calamitis events but tough time moving higher.
BUY ON WEAKNESS
(Market Call Minute.) Prefers the other banks.
BUY
Banks have had a good run. He views them as core holdings and wouldn't be afraid to own them here. Trading at reasonable multiples. There are signs of slowly but surely improvement in the economy. Solid yield.
COMMENT
Canadian banks will make a lot of money on their underwriting. This one has a little bit too much exposure in the US for him. Expecting a reasonably good quarter. Pretty much fully priced. If you own Hold but if not, every portfolio should have a Canadian bank.
BUY ON WEAKNESS
He is under weighted the financials because Canadian banks that are US exposed might be exposed to more bad debt than is thought. If the price gets close to $40 you can buy but don't go roaring after them.
HOLD
Canadian banks have been managing through the cycle considerably better than other global banks. This is the premier, highest-quality bank in Canada. He views Canadian banks as having run too far, too fast and he doesn't find great value in them right now. For a longer-term time horizon you should continue to Hold. Dividends are safe.
PARTIAL SELL
Would take some profits but would keep a little bit in the case of a rebound. Wait for a pullback before buying. If they have bad earnings numbers that would be an opportune time to get in. Good tangible common equity ratio.
PARTIAL SELL
Canadian banks were a screaming buy back in early March when they had yields of 6% plus. They are now up 40%-50%. If you own, consider taking some profits.
DON'T BUY
(Market Call Minute.) This would not be his first choice. There are a couple of others that would have a better valuation.
TOP PICK
Dividend yield of 4% plus. A year from now, the economy is going to be better and we won't be talking about housing prices and loan losses. Earnings are going to start growing. This bank’s wholesale business doesn't get enough credit. Very good upside in the next couple of years.
DON'T BUY
A number of things that have driven earnings gains in the past are probably not there going forward. Banks became very over owned and never will likely be a multiple contraction going forward. He has very limited holdings in financials.
HOLD
His 2 picks in Canadian banks would be Bank of Nova Scotia (BNS-T) and Royal Bank (RY-T). The issue he has with them is that the charts show them right up against the long-term trend. Things are not getting a lot better out there and he doesn't know how they are going to make a lot of money. Will probably be a sideways trade for some time. 4.3% yield.
SELL
Would consider taking profits as the banks have gone up on declining volume. Charts of Canadian banks shows volumes were highest at the bottom of the stocks. As the stocks have been going up, the volumes have been going down. Also big US exposure and commercial loan exposure is there. Credit card debt could be a problem.
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