CIBC Downgrades Royal Bank of Canada (RY) To Neutral, Keeps the PT

Royal Bank of Canada (NYSE:RY) is one of the Best TSX Stocks to Buy According to Billionaires. On September 5, Paul Holden from CIBC downgraded Royal Bank of Canada (NYSE:RY) from Outperform to Neutral, while keeping the price target unchanged at C$208.

The conservative rating comes despite Royal Bank of Canada (NYSE:RY) beating Wall Street targets for its fiscal third quarter of 2025, on August 27. The company posted a revenue of $12.32 billion, up 13.49% year-over-year and ahead of expectations by $788 million. Moreover, the EPS of $2.78 also topped consensus by $0.42.

Management noted growing its net income by 21% year-over-year to reach $5.4 billion. In addition, the bank saw growth coming from all its business segments. Despite this performance, Royal Bank of Canada (NYSE:RY) was downgraded to Neutral by Holden. He noted the downgrade is due to valuation concerns and an implied return to price target of only 3% after earnings season from the Canadian banks. He noted that the group’s consensus estimates are conservative and believes that Canadian banks can continue to beat expectations.

Royal Bank of Canada (NYSE:RY) is a global financial institution offering banking, wealth management, capital markets, and insurance services.

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Disclosure: None. This article is originally published at Insider Monkey.