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Investing.com - BMO Capital has raised its price target on Royal Bank of Canada (TSX:RY) (NYSE:RY) to C$203.00 from C$190.00 while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week high of $147.64, with five analysts recently revising their earnings estimates upward.
The price target increase follows Royal Bank of Canada’s strong quarterly earnings that exceeded analyst expectations. The bank reported earnings per share of $3.84, beating BMO Capital’s forecast of $3.36 and the consensus estimate of $3.32 by 14% and 16% respectively. The bank has maintained dividend payments for 53 consecutive years, with a current dividend yield of 3.11% and impressive 12% dividend growth over the last twelve months.
BMO Capital noted that the earnings beat was broad-based across the bank’s business segments, with particularly strong performances from Personal Banking and Capital Markets divisions. The Personal Banking segment benefited from better-than-expected net interest margin, loan growth, and net interest income.
The Capital Markets division contributed to the outperformance with higher trading revenue and stronger Corporate & Investment Banking revenue, according to the research firm’s analysis.
Royal Bank of Canada achieved an adjusted return on equity of 17.7% and return on assets of 90 basis points, while maintaining a Common Equity Tier 1 (CET1) ratio of 13.2% after repurchasing 5.5 million shares during the quarter.
In other recent news, Royal Bank of Canada (RBC) has reported strong financial results for the third quarter of 2025, exceeding analysts’ expectations. The bank achieved an adjusted diluted earnings per share (EPS) of $3.84, surpassing the projected $3.32. Revenue also outperformed forecasts, reaching $16.99 billion compared to the anticipated $16.02 billion. In addition to its earnings report, RBC Insurance Co. Ltd. (RBCICL) has seen a revision in its outlook by S&P Global Ratings. The outlook was changed to negative from stable, while the company’s ’AA-’ long-term issuer credit and financial strength ratings were affirmed. This adjustment reflects concerns about RBCICL’s reduced product diversification. Over recent years, the company has narrowed its focus to creditor reinsurance and longevity reinsurance. These developments provide insights into RBC’s current financial standing and strategic direction.
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