Royal Bank of Canada (RY:CA)
Royal Bank of Canada (RY:CA) received a target price increase from BMO Capital Markets to $245.00 from $229.00, reflecting a more optimistic outlook on the bank’s earnings power and balance sheet resilience.
BMO’s upward revision is driven by stronger-than-expected performance across Royal Bank’s diversified business lines, particularly in capital markets, wealth management, and insurance, which continue to benefit from elevated market activity and improving client engagement. The firm also points to Royal Bank’s leading scale and market share, which provide operating leverage as revenue growth stabilizes and expense growth remains controlled.
The higher target further incorporates confidence in Royal Bank’s capital position and risk management, with solid CET1 ratios providing a cushion against macroeconomic uncertainty and allowing the bank to sustain attractive shareholder returns through dividends and selective capital deployment. BMO appears increasingly comfortable that credit quality pressures are manageable, even in a slower growth environment.
While the revised target implies meaningful upside, the outlook remains measured rather than aggressive, as Royal Bank’s shares are still sensitive to interest rate expectations, loan growth trends, and broader economic conditions. Overall, the target increase reinforces Royal Bank’s status as a high-quality core holding within the Canadian banking sector, offering a combination of earnings stability, dividend income, and moderate capital appreciation potential.
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