Hikes G&M
I own 4 out 5 of the big Cad banks. The only one that I don't own is CM. Great wealth builders. I don't post the banks too often just because it an obvious core holding for years . Thought I would post the raises today GLTA
Several analysts have raised their price targets on Royal Bank of Canada (RY-T) following its earnings beat on Wednesday.
Among them: Canaccord Genuity hiked its target price to C$143 from C$140; CIBC raised its price target to C$145 from C$138; Credit Suisse raised its target price to C$140 from C$135; National Bank of Canada raised its price target to C$144 from C$140; and Desjardins Securities raised its target to C$141 from C$138).
Here are some highlights of how analysts are reacting to the earnings:
Canaccord Genuity’s Scott Chan: “RY reported a core EPS beat which we estimate was largely in line adjusting for better credit results. Overall, the firm generated PTPP (Pre-Tax Pre-Provision earnings) growth of 6% YoY (incl. Cdn. P&C Banking at 13%), supported by net revenue growth (Net interest income ex trading up 6% YoY) and good expense control. We remain positive on RY shares due to the bank’s strong fundamentals (e.g., volume growth, credit) and its excess capital position (that could support above-average NCIB and dividend increases). Thus, we maintain our buy rating.”
Scotiabank’s Meny Grauman: “We turned more positive on RY in the wake of Q2′s results thanks to a clear improvement in earnings in Canadian Banking and a very bullish outlook on the post-pandemic recovery and RY’s ability to thrive under those conditions. This quarter those same positives continued to shine through even as the results themselves were not quite as impressive relative to some peers, especially with respect to all-bank PTPP growth. Canadian Banking continued to beat our expectations and show well (PTPP earnings growth of 13%, op. leverage of 6% Y/Y and mortgage growth of 12.9% Y/Y) while Management reiterated its conviction in the durability of the recovery and RY’s ability to benefit from a number of trends including a comeback in cards activity, the potential for upside to rising rates especially at City National, and a very robust investment banking pipeline.” The analyst reiterated a “sector outperform” rating and C$148 price target.
CIBC’s Paul Holden: “FQ3 provided a positive update for net interest income, fee income, credit, expenses and capital.... Cooling capital markets revenue and earnings were broadly expected, but there has been a concern they would hinder PTPP (Pre-Tax Pre-Provision earnings) growth and positive operating leverage. While capital markets PTPP was down 14% Y/Y, RY was still able to produce all-company PTPP growth of 6% Y/Y. We assume capital markets revenue will slow in F2022 (-6%), but still forecast PTPP growth (10%) and positive operating leverage of 3%.”