Royal Bank of Canada Price Target Raised to C$190 by Barclays

Barclays raised Royal Bank of Canada's price target to C$190 from C$182 and maintained an Overweight rating. The firm expects Canadian banks to report improved Q3 earnings due to declining loan losses and higher net interest income. While concerns over tariffs and mortgage renewals will persist, Barclays expects banks to reiterate 2025 outlooks.

Barclays has recently increased its price target for Royal Bank of Canada (RBC) from C$182 to C$190, while maintaining an Overweight rating. This move reflects the bank's optimism regarding the Canadian financial sector's performance in the third quarter of 2025 [1].

The upgrade is based on several factors. Barclays expects Canadian banks to report improved earnings for the third quarter, driven by declining loan losses and higher net interest income. The bank's analysts anticipate that these positive trends will continue, supporting the sector's overall growth [1].

However, Barclays acknowledges that concerns over tariffs and mortgage renewals will persist. The firm believes that while these challenges may impact individual banks, the sector as a whole is likely to weather these issues and continue to report strong results. Additionally, Barclays expects Canadian banks to reiterate their 2025 outlooks, providing investors with a clearer picture of the sector's future prospects [1].

The latest upgrade comes as other brokerages have also boosted their price targets for Canadian banks. For instance, Raymond James has set a target of $124.00 for Crown Castle, while Barclays has increased its target to $121.00. These moves reflect a broader sentiment of optimism in the Canadian financial sector [2].

Institutional investors have also shown interest in Canadian banks. Vanguard Group Inc., for example, has increased its holdings in Crown Castle by 10.1% in the first quarter. Deutsche Bank AG has raised its holdings in Crown Castle by 60.9% during the same period. These investments suggest that institutional investors are confident in the long-term prospects of the Canadian financial sector [2].

In conclusion, Barclays' upgrade of RBC's price target reflects the bank's positive outlook on the Canadian financial sector. While challenges remain, the sector's strong fundamentals and positive earnings trends are expected to support continued growth.

References:
[1] https://www.marketbeat.com/instant-alerts/barclays-lonbarc-price-target-raised-to-gbx-435-2025-08-05/
[2] https://www.marketbeat.com/instant-alerts/royal-bank-of-canada-forecasts-strong-price-appreciation-for-crown-castle-nysecci-stock-2025-08-07/