Royal Bank of Canada

RY: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Royal Bank of Canada: Largest Canadian Bank With Dominant Shares; Shares Slightly Overvalued

Maoyuan Chen

Jan 30, 2025

After taking a fresh look at Royal Bank of Canada, we are increasing our fair value estimate to CAD 157/USD 110 from CAD143/USD 99. We maintain our wide-moat rating, Exemplary Morningstar Capital Allocation Rating. We are increasing the bank’s Morningstar Uncertainty Rating to Medium from Low, given its exposure to the Canadian housing market and uncertainty related to US-Canada tariffs. We view shares as slightly overvalued.

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