Argus Crowns The Royal Bank Of Canada With A Higher Price Target

Argus reiterated its Buy rating on Royal Bank of Canada RY, raising the price target to $71 from $69.

According to the company's Q3 results, the quarterly adjusted EPS was C$1.72 (US$1.34), up from C$1.66 (US$1.28) a year earlier. Revenues rose 10 percent to C$9.7 billion, aided by the City National acquisition and stronger capital markets revenue.

The analysts like several aspect of the company's franchise, including its leading positions in personal/commercial banking, capital markets, and wealth management.

"The company also has a strong record of organic growth and well-timed acquisitions. In our view, the November 2015 acquisition of City National provides a strong platform to grow RBC's high-net-worth segment," wrote Argus, noting that management plans to expand this business in several states.