Royal Financial institution of Canada (RY), the Tenth-largest financial institution on this planet, is scheduled to report its third-quarter monetary outcomes on August 25 earlier than markets open.
Over the previous yr, the financial institution inventory has jumped greater than 30% and is at the moment buying and selling near C$130. (See Royal Bank of Canada stock charts on TipRanks)
Robust earnings may drive RBC shares larger, so let’s take a look at what analysts expect for the second quarter.
Analysts on common count on RBC to report adjusted EPS of C$2.69 in Q3 2021, indicating a development of 20.6% from the prior-year quarter (C$2.23 per share). Income is predicted to come back in at C$12.21 billion, representing a rise of 5.9% from C$11.53 billion reported within the third quarter of 2020. RBC topped EPS estimates prior to now fourth quarters.
The Delta variant of COVID-19 may have diminished RBC’s third-quarter earnings efficiency, because the financial institution may need develop into extra cautious about releasing funds from mortgage loss reserves acknowledged earlier.
On August 18, Scotiabank analyst Meny Grauman maintained a Purchase ranking on the inventory and a C$148 value goal. This means 12.2% upside potential.
Grauman wrote in a report, “After peaking in Q1, beats had been smaller in Q2 and we count on even smaller beats in Q3.”
The remainder of the Road is cautiously optimistic on RBC, with a Average Purchase consensus ranking primarily based on 5 Buys and two Holds. The average Royal Bank of Canada price target of C$137.78 implies 4.4% upside potential to present ranges.
TipRanks’ Good Rating
RBC scores a 9 out of 10 on TipRanks’ Smart Score ranking system, indicating that the inventory has robust potential to outperform the general market.