Barclays Maintains an 'Equalweight' on Royal Bank of Canada (RY); The Strongest in a Low-Earnings-Quality Quarter?
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Price: $205.23 +0.01%
Rating Summary:
10 Buy, 6 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 6 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on Royal Bank of Canada (NYSE: RY) price target of $53.00.
Barclays analyst says, "The market welcomed RY's results on an absolute and relative basis, up 3.7% on Friday, against an average loss of 26 bps for the other five banks (and TSX down 0.3%). We agree with the sentiment as, unlike its peers that have reported to date, net interest margins in its domestic banking platform held relatively steady for the quarter, while loan growth remained resilient. Further, with Royal providing additional disclosure of its European exposures, we believe this has alleviated some of the market's concerns. That said, similar to its peers, earnings quality was diminished, as Royal benefitted from a lower than forecast effective tax rate and higher securitization revenues, while operating leverage was also negative for the quarter."
For an analyst ratings summary and ratings history on Royal Bank of Canada click here. For more ratings news on Royal Bank of Canada click here.
Shares of Royal Bank of Canada closed at $47.76 yesterday.
Barclays analyst says, "The market welcomed RY's results on an absolute and relative basis, up 3.7% on Friday, against an average loss of 26 bps for the other five banks (and TSX down 0.3%). We agree with the sentiment as, unlike its peers that have reported to date, net interest margins in its domestic banking platform held relatively steady for the quarter, while loan growth remained resilient. Further, with Royal providing additional disclosure of its European exposures, we believe this has alleviated some of the market's concerns. That said, similar to its peers, earnings quality was diminished, as Royal benefitted from a lower than forecast effective tax rate and higher securitization revenues, while operating leverage was also negative for the quarter."
For an analyst ratings summary and ratings history on Royal Bank of Canada click here. For more ratings news on Royal Bank of Canada click here.
Shares of Royal Bank of Canada closed at $47.76 yesterday.
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