10:30 AM EDT, 05/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

With the Canadian economy showing weakness, we view RBC as well positioned to outperform given its scale, superior earnings profile, and demonstrated history of maneuvering through tough economic times. We increase our target price by $31 to $130, 14.6x our FY 25 (Oct.) EPS view ($8.90 converted from CAD), a wider risk premium than the peer average of 9.7x. We raise our FY 24 EPS to CAD11.55 from CAD11.51 and increase FY 25's to CAD12.20 from CAD11.91. RY posted adjusted Apr-Q EPS of CAD2.92 vs. CAD2.65 a year ago, beating the CAD2.74 consensus. Record results were seen in Capital Markets (+18%) as market share gains and strong client activity led to a 45% surge in investment banking revenue. Canadian Banking saw revenue jump 13% as results benefited from strong balance sheet growth and the HSBC Canada acquisition. Productivity improvements were seen with the bank's efficiency ratio improving 240 bps to 56.0%. Still, like other Canadian banks, RY saw its gross impaired loans rise 21 bps to 0.55%.