What changed
$RY — AVOID 📊 | 6 MONTHS THESIS
🎯 latest | Rev $17.4B | EPS $3.90 vs $3.79 🟢
💡 Consensus expects steady growth and benign credit, but the small beat (3.90 vs. 3.79) does not justify the elevated multiple. Variant view: the market underestimates mean reversion risk from rate cuts and a softening economy, making the stock overpriced for the next quarter.
📉 Reward/risk: 1.5:1
🏢 Business Quality: 8/10 - RBC is a well-diversified bank with dominant Canadian retail and wealth management, strong capital ratios, and a history of stable earnings.
📊 Valuation: rich - P/E ~20x forward vs. 12x historical, P/B ~2.5x vs. 1.8x historical median; also expensive relative to global banking peers on EV/EBITDA and...
🔮 Catalyst: next quarterly earnings (Q2 2025, expected late May 2025)
💰 Entry: $199.54, stop $188, target $210
📊 Our read: AVOID. Full analysis →
https://stockduty.xyz/s/RY0615