Royal Bank of Canada EPS $2.84, Price Target Rises to C$272 with 45M Buyback
RY•TD Securities raised Royal Bank of Canada’s price target to C$272 from C$267 and maintained its Buy rating after the bank reported Q2 EPS of $2.84 and $12.73 billion in revenue, each beating forecasts. The bank also approved a repurchase of up to 45 million shares, boosting shareholder value.
1. Analyst Rating and Price Target Increase
TD Securities maintained a Buy rating on Royal Bank of Canada and raised its price target from C$267 to C$272, reflecting confidence in the bank’s growth prospects and capital strength.
2. Q2 Financial Performance
In the second quarter, the bank delivered earnings per share of $2.84 and revenue of $12.73 billion, surpassing analyst projections and marking the fourth consecutive quarter of beats year-over-year.
3. Share Repurchase Plan
The board authorized a repurchase of up to 45 million common shares, a move designed to reduce outstanding shares and enhance earnings per share for existing investors.
4. Segment Growth and Credit Metrics
Wealth and Capital Markets units achieved over 20% net income growth, while domestic banking saw boosted returns on equity; impaired loans rose modestly but forward-looking credit indicators suggest stabilizing asset quality.
