Royal Bank of Canada: TD Cowen raises target to $208 from $191 on Strong Quarterly Performance

STA Research
August 29th, 2025
Royal Bank of Canada (RY:CA) Scotiabank Lifts Valuation Forecast on Strong Fundamentals
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Royal Bank of Canada (RY:CA) 

Royal Bank of Canada received a 12 month target price increase from TD Cowen to C$208 from C$191, reflecting the bank’s stronger-than-anticipated quarterly performance. Analysts highlighted that credit quality came in better than expected, with lower provisions for credit losses signaling resilient loan books and disciplined risk management in the face of economic uncertainty. This strength eased investor concerns around rising defaults and provided a boost to overall profitability.

In addition, capital markets operations delivered solid results, driven by higher trading activity, advisory mandates, and investment banking revenues. This performance marked a key differentiator compared to some peers, as RBC leveraged its market leadership and global scale to capture client flows during volatile conditions. Coupled with steady contributions from its retail, wealth management, and insurance businesses, the quarter demonstrated the bank’s ability to generate diversified revenue growth.

TD Cowen also underscored the strength of RBC’s balance sheet and capital position, noting that capital levels remain well above regulatory minimums, giving the bank flexibility for growth initiatives, dividends, and potential share buybacks. The combination of improving credit performance, strong fee income, and healthy capital markets activity has led analysts to believe that RBC is well-positioned to outperform in the Canadian banking sector over the next several quarters.

The upward revision in target price signals greater confidence in RBC’s earnings power, suggesting that the bank’s operational resilience and scale advantages will continue to support shareholder returns even in a challenging macroeconomic backdrop.

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