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 garnered a strong reputation among experts, with many emphasizing its leading position in the Canadian banking sector. Analysts have highlighted solid earnings growth, improved capital reserves, and strategic moves such as the acquisition of HSBC Canada that bolster its international presence. Despite the stock trading at a premium valuation, which some view as excessive, many experts consider it a dependable long-term investment, citing its consistent dividend increases and robust fundamentals. However, caution is advised due to high current valuations and concerns over a potential downturn in the broader banking sector. The consensus reflects a belief in the bank's resilience, although calls for profit-taking and a waiting strategy for better entry points have emerged as common themes.

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Consensus
Hold
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Valuation
Overvalued
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Similar
TD,TD
TOP PICK
The big jump in the stock was overdone and expects there will be a pullback. There are a lot of things it still has to do, so it's not a clear cut story. Management is taking action on cahnges needed and they have some really good people.
BUY
Their difficulties in the US is already priced into the market. Has heard that if they sell the US subsiduary, they could make as much as $10/15 a share. Likes the banks in general. Favourites are Bank of Montreal (BMO-T) and Toronto Dominion (TD-T) as they are the cheapest.
TRADE
Banks have been going up because bond yields have been dropping. Dividends are about the same as bond yields, but you also get dividend tax credits. This is not his favourite bank. Prefers the National (#1) and the Bank of Montreal (#2).
BUY
Market is generally negative on the banks because they see the yield curve flattening in the US. In fact, the yield curve has steepend in Canada which is very positive for the banks. Feels you can do better in some of the larger banks, especially Bank of Nova Scotia and Royal Bank.
BUY
Have a good franchise on the retail side and their big mistake is that they have not cut the costs and made it work. Had really good growth on their wealth management side.
DON'T BUY
Has had a wonderful upbull. In 2000 it was $35 and got up to $65. About January 2004 the stock started to meander. There was a dividend, but not much capital appreciation. It is currently at a crossroad. Put a stop/loss in at $61.50.
BUY
Expects bank stocks will do quite well over a 5 year horizon. They do well in retail, wealth management and sometimes in international growth. Have a lot of cash on their balance sheets and can buy back stocks, pay extra dividends or do acquisitions. In the next 12 months the return will be lower than previous.
BUY
Q: Coming into an inheritance. What is a buy for a long term hold that pays dividends? A: Good dividend. 2/3 of gains over time are made from dividends. Good long term hold.
WAIT
Not too excited on the near term prospects on it, but you shouldn't lose a lot here. Really need to address problems in the US. Have a great Canadian franchise. Return on Equity (ROE) is lower than the group and their capital ratios are not as good. Balance sheet is weaker. Until you see them focusing on their US problems, stay clear.
TOP PICK
Was up 4% last year with the group when the majors were up 13%. Essentially a 10% laggard to the group. Whenever a bank has lagged that much, it will catch up. It's hopefully a fixable problem. 2 aspects in the US, mortgages making only a little bit of money, and the broker side.
WAIT
Good long term hold. Would hold off buying until they clean up the mess in the US.
BUY
#1 bank for value today is National. Differential of 21% between what they think it's worth and the current stock price. Toronto Dominion is #2 and Royal is #3. Not much difference between the current price and their model price. Banks have paused here for awhile.
BUY
Has stumbled in the last couple of years because of its US strategy. Reasonable value, but prefers Bank of Nova Scotia and Toronto Dominion.
TOP PICK
Market is discounting all the bad news on the stock. The US franchise has to be sorted out and that's a big issue, but people are overlooking that the broker part of the US business is doing OK. Have to get out of the insurance business because it makes no sense to be in insurance in the US. 3 1/2% yield.
WEAK BUY
A range trader. A very defensive name. Not his favourite play in the bank sector.
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