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
0
Investor Insights
star iconJul 26, 2026, 12:00 am

This summary was created by AI, based on 57 opinions in the last 12 months.

Royal Bank (RY) is widely recognized as the leading bank in Canada, benefiting from a favorable regulatory environment and robust investments in capital markets and wealth management. Many analysts have reiterated it as a 'Top Pick,' citing its strong earnings growth and consistent dividend payments. Despite its strong performance, concerns about valuation persist, particularly with the stock trading at high multiples compared to historical averages. Comments on future growth potential highlight the bank's ability to adapt in the current economic climate, although some experts advise exercising caution due to high valuation levels. Overall, RY is considered a stable, long-term investment with significant upside potential, supported by growing cash reserves and elevated return on equity targets.

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Consensus
Positive
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Valuation
Overvalued
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Similar
TD, TD
BUY
Very strong retail franchise. Very good investment bank and very good asset management business. Think the US assets will continue to grow.
COMMENT
Seasonal strength for banking sector tends to be September until April. Last year this did not work because 4th quarter results clearly were not going to help the market. 4th quarter this year (end of Nov.),you will see reduced reductions in write-offs, dividend increases and favourable comments on prospects for next year. Stock has bottomed and MACD is starting to show early signs of recovery. Good chance of breaking above $50, and when it does could easily get to around $56.
BUY
Likes all the Canadian banks. Bank of Montreal (BMO-T), Toronto Dominion Bank (TD-T) and Royal Bank (RY-T) are all on a great playing field and will be able to acquire some good assets.
DON'T BUY
Only bank they own, but a 1% weight. Canadian banks are likely to see a multiple compression and he would be a little cautious.
TOP PICK
Buy Oct/Nov call option $40 or $42.
BUY
The Preferred: Look at what Buffet has done – he’s gone for preferred shares.
TOP PICK
RBC CAPITAL TRUST BONDS Dec 31’13– doesn’t think there is a maturity risk. They are best of breed. It’s good value here. (Similar for all the banks.) Close to 7%, semi-annual coupon.
DON'T BUY
Not his favorite. They have US customers in the US southeast where they will have some losses but it’s a small enough piece of their business that it is not going to overwhelm the bank. It will cut into growth but no more than that.
BUY
A tremendous amount of money sitting on the sidelines and it has to find a home because of poor returns. Good yield.
WATCH
350 companies in the US financial sector have plummeting profitability. These concerns are going to keep on revisiting us. Would love to step in and buy this one at the right time and is waiting for the opportunity. A little uptick in profitability and he will be there.
DON'T BUY
Banks did a really good job this quarter relative to expectations. This would be one of the stellar ones. The issue he has with the banks right now is lack of earnings growth. Thinks we are through the worst of the asset backed write-offs. Now we are into the pure credit cycle and there is a little bit more deterioration on the credit side.
COMMENT
With a 5-year time horizon, you are fine with any of the banks. This one has moer issues with the US with its bigger exposure. Caught in the same issues as all global financials. Credit crunch is impacting balance sheets. Probably more write-downs to come. Earnings growth is going to be pretty tough.
DON'T BUY
Would prefer Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T). Owns this but is underweight. Worried that they could surprise on the downside in the quarter.
DON'T BUY
About 25% of its earnings come from the US now. Banks with US exposure are not valued as well as those without. There is still a black hole in the US as to how much bad paper is still out there. A great bank, but its US exposure will continue to hurt them.
DON'T BUY
(Preferred Shares) Not have fan of preferred shares. Most of them are perpetual is meaning that once you buy them you are stuck with them. He sees higher interest rate potential down the road.
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