Jefferies has revised its price target for Royal Bank of Canada (RY, Financial), reducing it from C$195 to C$180, though it continues to uphold a Buy rating on the stock. The firm has adjusted its forecast for 2025, anticipating that growth in Canada's financial sector will pick up again by 2026. However, Jefferies highlights persistent risks, notably the absence of tariff resolutions, which weigh on the sector's outlook.
The Canadian financial landscape, traditionally robust against economic downturns, faces additional uncertainty due to upcoming domestic elections and potential negotiations, which contribute to a lack of clarity in the near term. Jefferies emphasizes that while some negative impacts have been accounted for in the current stock prices, the adjustment process is not yet complete.
Alongside the revisions for Royal Bank of Canada, the firm has also reduced its estimates and downgraded other Canadian financial institutions, including CIBC and the National Bank of Canada, suggesting a cautious stance amidst the prevailing economic and political uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Royal Bank of Canada (RY, Financial) is $135.39 with a high estimate of $137.27 and a low estimate of $132.13. The average target implies an upside of 16.47% from the current price of $116.24. More detailed estimate data can be found on the Royal Bank of Canada (RY) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Royal Bank of Canada's (RY, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Royal Bank of Canada (RY, Financial) in one year is $117.15, suggesting a upside of 0.78% from the current price of $116.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Royal Bank of Canada (RY) Summary page.
