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Opinions Stockchase Insights
Royal BankRY.TOBUYJul 26, 2023
Stockchase InsightsStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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RY is the 800-pound gorilla, with the ability to maneuver the banking sector any way it wants. He's long this one in his core strategy.
Brendan Caldwell
Stick with it. The banks offer stability and pretty good value. RY has regained its premium valuation. Their yield is still above 4%. They remain the top bank in Canada and are prominent internationally. The big question with the banks is what will happen with the loan books. All the banks have made aggressive moves in loan loss provisions, though.
Michael SprungIf interest rates decline as he expects, the banks will absorb any losses that arise, but that loss ratio will be a lot of lower if rates normalize. He likes the whole group, but you're safer with RY. TD offers a lower PE, true. RY is a steady producer, is the highest-quality Canadian bank.
Andrew Pink
Core bank holding. Consistent, great credit culture. Layoffs should improve productivity ratios. HSBC will be a great acquisition, providing a way to increase wealth management plus gain access to immigrant customer base.
Christine Poole
Good risk management company. High quality management team with excellent franchise value. Does not think interest rates will fall as quickly as expected. Credit losses will not be as high as predicted. Good long term investment.
Darren Sissons
Banks are reflecting lots of bad news in the Canadian economy. Likes the HSBC acquisition, should add to long-term growth. Diversified. Attractive multiple around 10.5x earnings, 1.4x book. Loan loss provisions will climb a bit, but manageable. Banks report next week. Highly regulated industry. Hopes City National in US to stabilize soon. Yield is 4.52%.
(Analysts’ price target is $133.85)Christine PooleAn excellent company and buying pullbacks is a fine strategy. They're diversified geographically, in business (personal and commercial banking here and the US), dominant wealth management franchise in Canada, and have grown their dividend 7% compounded over the last decade. Now pays under 5%. You're paid to wait. Expect a double-digit return over a cycle.
Brian MaddenThe price per book is just over 1.5 down from an average of 1.8 over the past 10 years. The book value has increased for 29 years in a row, It is rare to be able to buy it at less than 10X earnings where it is now. Buy 10 Hold 6 Sell 1
(Analysts’ price target is $134.83)
Teal LindeTry RY for wealth management, or TD for US retail banking. His preferences in the space, and he owns both.
Zachary Curry 
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
RY has been one of the fastest-growing Canadian banks, and it has survived several recessions in the past. Although there is the potential for a recession to arise as a result of high interest rates, we would be very comfortable with holding any of the large Canadian banks for the long-term. While there are concerns about a potential recession, a lot of these fears have been priced into the Canadian banks, as we have seen their valuations contract as a result of weakening capital markets and reduced lending.
The large Canadian banks will generally grow with the economy and the capital markets. As the Canadian real estate market grows and consumers and businesses take on additional debt to fund real estate, property, investments, etc., the large banks will benefit and see their top and bottom lines grow. Most of the Canadian banks have also been expanding into other geographies, which has helped to stimulate growth.
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