BMO Capital analyst Sohrab Movahedi maintained a Buy rating on Royal Bank Of Canada (RY – Research Report) yesterday and set a price target of C$190.00.
Sohrab Movahedi’s rating is based on Royal Bank of Canada’s strong financial performance and strategic positioning. The bank reported a significant earnings per share (EPS) beat in the first quarter of 2025, driven by robust results in its Capital Markets division, which achieved a record trading quarter. Additionally, Personal Banking, Wealth Management, and Insurance segments also surpassed expectations, contributing to strong revenue growth and operating leverage.
Furthermore, Royal Bank of Canada maintains strong capital levels and a high return on equity (ROE) of approximately 17%, supported by a stable CET1 ratio. The recent acquisition of HSBC Canada has bolstered its leadership in Canadian Banking, positioning the bank to capitalize on potential rebounds in market-related activities. These factors, combined with peer-leading ROE and EPS growth, underpin Movahedi’s Buy rating for the bank’s stock.
Movahedi covers the Financial sector, focusing on stocks such as Royal Bank Of Canada, Toronto Dominion Bank, and Bank Of Nova Scotia. According to TipRanks, Movahedi has an average return of 8.3% and a 55.56% success rate on recommended stocks.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a C$198.00 price target.