Jefferies downgrades Royal Bank of Canada, TD Bank on full valuation

Royal Bank of Canada

25/11/2025 12:11

** Jefferies downgrades Canadian lenders Royal Bank of Canada RY.TO and TD Bank TD.TO to "hold" from "buy"

** Canadian lenders are trading at “fully valued” levels after strong rally in the fall, brokerage says

** Jefferies now has no "buy" ratings on Canadian banks

** Brokerage says revenue growth will remain challenging for Canadian lenders with credit pressures yet to dissipate

** Jefferies expects a stable Q4 with modest lending volumes, while revenue growth support is likely to come from capital markets and wealth management

** As of last close, RY and TD stock are up 22% and 52.5% YTD, respectively

 (Reporting by Pragyan Kalita in Bengaluru)

 ((Pragyan.Kalita@thomsonreuters.com))