Skip to main content

Market Overview

Royal Bank Of Canada's Strong Performance Garners Attention, Initiation At Buy From Arugs

Royal Bank Of Canada's Strong Performance Garners Attention, Initiation At Buy From Arugs

Royal Bank of Canada (NYSE: RY) shares have performed strongly over the past quarter, rising 21.1 percent, as compared to the 6.5 percent rise in the S&P 500.

Argus’ Stephen Biggar initiated coverage of the company with a Buy rating and price target of $69.

Robust Performance

The company reported its adjusted earnings for 2Q on May 26 at $1.66, marginally below the year-ago levels but beating the consensus.

Biggar mentioned the results reflected “strong earnings in Wealth Management, record earnings in Personal & Commercial Banking and higher earnings in Insurance. The late 2015 acquisition of City National has provided a strong platform to expand the company’s high net worth franchise.”

Related Link: Is The Post Brexit Rally For Real? FTSE 100 Index Might Indicate Just That

Royal Bank of Canada intends to expand the City National business over several states. The business is already well positioned in the fastest growing net worth areas of New York, Chicago, San Francisco and Washington D.C.

Growth And Expansion

“While other Canadian banks have exposure to U.S. wealth and financial markets, RBC has focused on the highest margin areas of wealth management, capital markets and high net worth, rather than traditional banking, where Canada accounts for the vast majority of loans and net income,” Biggar explained.

Canada accounts for about 62 percent of the company’s revenues, while the United States accounts for 21 percent and the other international markets for 17 percent.

Biggar believes expansion and diversification outside Canada would continue to be the primary growth driver for the company.

Latest Ratings for RY

Mar 2021B of A SecuritiesDowngradesBuyNeutral
Mar 2021Argus ResearchMaintainsBuy
Feb 2021Credit SuisseMaintainsOutperform

View More Analyst Ratings for RY
View the Latest Analyst Ratings


Related Articles (RY)

View Comments and Join the Discussion!

Posted-In: Argus Stephen BiggarAnalyst Color Long Ideas Price Target Initiation Analyst Ratings Trading Ideas

Latest Ratings

FOEGabelli & Co.Downgrades
ACMCredit SuisseMaintains67.0
PRUCredit SuisseMaintains125.0
TDGCredit SuisseMaintains660.0
IIIBarrington ResearchUpgrades7.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at