- CFRA analyst Alexander Yokum downgraded Royal Bank of Canada ( NYSE: RY ) to Hold from Buy, citing "fewer reasons for shares to outperform given RY's outsized loan exposure to Canadian residential mortgages."
- The analyst reduced his FY22 EPS estimate to C$11.08 from C$11.36 and FY23 EPS estimate to C$11.83 from C$11.95.
- RBC ( RY ) stock has dropped 3.0% in Wednesday midday trading. Canadian bank stocks are trading in the red after the disappointing results from RY and Scotiabank ( BNS ).
- "Despite a tough macro outlook, we take solace in RY's conservatism as it maintains robust capital levels," Yokum said.
- Earlier, Royal Bank of Canada ( RY ) fiscal Q3 earning s hit by reserve build, challenging markets
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Royal Bank of Canada cut to Hold at CFRA on its exposure to Canadian mortgages