Core Holding ....G&M Again a Core holding til the cows come home Ya gotta love these cash cows....
A strong performance from Royal Bank of Canada (RY-T), propelled by a plunge in provisions for credit losses and record Capital Market earnings, prompted analysts to raise their targets for its shares on Friday.
RBC earned $4-billion or $2.76 a share for the quarter ending April 30, compared with profit of $1.5-billion or $1 in the same quarter last year. Adjusted earnings were $2.79 a share, exceeding the Street’s projection of $2.51.
Those making changes include:
* Desjardins Securities’ Doug Young to $138 from $129 with a “buy” rating. The average is $121.93.
“We like RY’s scale, ACL coverage, expense focus and growth prospects,” he said.
* Credit Suisse’s Mike Rizvanovic to $132 from $125 with an “outperform” rating.
“RY’s adjusted EPS of $2.79 was well ahead of expectations (we had $2.50; consensus was $2.51) driven mostly by lower PCLs, although we note that fee-based revenue outperformed, while expenses were in line with what we view as another solid quarter overall for the bank,” he said.
* BMO Nesbitt Burns’ Sohrab Movahedi to $139 from $131 with a “market perform” rating.
* Canaccord Genuity’s Scott Chan to $134.50 from $129.50 with a “buy” rating.
* National Bank Financial’s Gabriel Dechaine to $137 from $130 with an “outperform” rating.