Royal Bank of Canada: Strong Financial Performance and Growth Potential Supports Buy Rating

Analyst Matthew Lee of Canaccord Genuity maintains a Buy rating on Royal Bank of Canada with a price target of C$201.00. The bank's strong financial performance, revenue growth, and solid credit performance, including robust profitability, efficient cost management, and a strong capital position, justify the rating. Lee is a 5-star analyst with a 14.7% average return and a 67.57% success rate.

Analyst Matthew Lee of Canaccord Genuity has maintained a Buy rating on Royal Bank of Canada (RBC), with a price target of C$201.00. This rating is based on the bank's strong financial performance, robust revenue growth, and solid credit performance. Lee, a 5-star analyst with a 14.7% average return and a 67.57% success rate, underscores RBC's efficient cost management, strong capital position, and profitability.

RBC's latest quarterly results highlighted a significant increase in revenue, reaching $32.57 billion compared to $13.98 billion last year. The net profit also surged to $4.39 billion, up from $3.95 billion in the same period last year [1]. This strong performance was bolstered by lower loan-loss provisions, as reported in the third-quarter results [2].

Despite the positive outlook, corporate insider activity indicates negative sentiment. There has been an increase in insiders selling their shares. Senior Officer Graeme Ashley Hepworth sold 308 shares on July 22nd, and Director David Ian Mckay sold 20,304 shares on the same day [1]. The total shares sold by insiders in the last 90 days amount to 63,039 shares valued at $11,175,413 [1].

Desjardins analysts have also raised their quarterly earnings per share (EPS) estimate for the third quarter of 2025 to $3.28 per share, up from the previous estimate of $3.12 [1]. Desjardins maintains a "Buy" rating with a price objective of $193.00 for the stock.

The consensus rating among analysts remains "Buy" with an average target price of C$189.62 [1]. Jefferies Financial Group has increased their target to C$207.00 [1], while Scotiabank has given the stock a "strong-buy" rating [1].

RBC recently declared a quarterly dividend of $1.54 per share, an increase from the previous $1.48 per share [1]. The dividend payout ratio stands at 49.49%.

References:
[1] https://www.marketbeat.com/instant-alerts/desjardins-issues-positive-outlook-for-tsery-earnings-2025-08-15/
[2] https://www.morningstar.com/news/dow-jones/202508278316/dow-jones-top-financial-services-headlines-at-4-pm-et-royal-bank-of-canada-third-quarter-results-buoyed-by-lower-loan-loss-provision-sompo