Royal Bank of Canada Receives a Hold from TD Securities

By Carrie Williams

Royal Bank of Canada (TSX: RY), the Financial sector company was revisited on May 25, yet the Wall Street analyst remains currently on the sidelines. TD Securities’ analyst Mario Mendonca reiterates their Hold rating on the shares, with a C$105 price target.

Mendonca noted:

“We expect RY to focus on organic growth and modest repurchases over U.S. deals.”

According to, Mendonca is a 3-star analyst with an average return of 4.7% and a 75.0% success rate. Mendonca covers the Financial sector, focusing on stocks such as Canadian Bank of Commerce, Manulife Financial Corp, and Royal Bank Of Canada.

Currently, the analyst consensus on Royal Bank of Canada is Moderate Buy and the average price target is C$101.17, representing a 7.7% upside.

In a report issued on May 18, KBW also reiterated a Hold rating on the stock with a C$99 price target.

Based on Royal Bank of Canada’s latest earnings report for the quarter ending January 31, the company posted quarterly revenue of C$11.45 billion and quarterly net profit of C$3.02 billion. In comparison, last year the company earned revenue of C$11.48 billion and had a net profit of C$2.56 billion.

Royal Bank of Canada engages in the provision of banking and financial solutions. It operates through the following segments: Personal and Commercial Banking, Wealth Management, Insurance, Investor and Treasury Services, and Capital Markets. The Personal and Commercial Banking segment offers services including auto financing, and retail investment businesses. The Wealth Management segment provides investments services, trusts, banking, credit, and other wealth management solutions. The Insurance segment refers to a range of life, health, home, auto, travel, wealth, group, and reinsurance products. The Investor and Treasury Services segment offers services among institutional investing clients through asset servicing, custodial, advisory, financing and other services to safeguard assets, maximize liquidity and manage risk, and providing short term funding, and liquidity management. The Capital Markets segment refers to services among public and private companies, institutional investors, government and central banks such as corporate and investment banking, equity and debt origination and distribution, and structuring and trading. The company was founded by J. W. Merkell, Edward Kenny, T. C. Kinnear, James B. Duffus, William Cunard, John Tobin, George P. Mitchell and Jeremiah Northup in 1864 and is headquartered in Toronto, Canada.

The company’s shares closed last Friday at $93.92.