- "Since we initiated coverage on the banks in October, Royal (RY) has moved from a 7% premium to the group back to its long-term average of 3%.," says analyst Mario Mendonca, upping the stock to a Buy with C$80 price target (about $76 in USD terms vs. last night's close of $64.04).
- "We continue to believe that the strong retail results as well as the shift to corporate lending, underwriting, and M&A from pure trading and considerable improvement in domestic commercial loan growth support a premium multiple ... Additionally, we like the diversification Royal’s large capital markets business offers and the improved stability in the capital market business. Importantly, the bank’s fixed income trading business held in better than we expected given the sharply weaker results from the U.S. investment banks."
- Shares +0.6% premarket
RBC boosted to Buy at TD Bank
Dec 6 2013, 09:25 ET