Royal Bank of Canada, operating worldwide in various financial service segments, trades on the NYSE as “RY”. The bank anticipates a stock rally towards $187.25 or above, continuing from a low point in April 2025.
The rising trend from the March 2020 low has seen notable movements. From a high of $119.41 in January 2022 to a low of $77.90 in October 2023, it marked a critical phase. Recent changes from April 2025 suggest an upward momentum after ending at $106.10.
Above the April 2025 base, movements show a climb towards $134.26. Within this phase, further advances breached key price channels and reached $149.26 in the first wave. The forecast anticipates this to progress into the $165.02 to $178.54 range, pausing only briefly before a likely increase.
The stock is projected to extend up to $187.25, with nine rally phases anticipated. This will eventually lead to a corrective phase, allowing fresh buying opportunities. Pullbacks in three, seven, or eleven swings are strategic points for potential stock purchase, ensuring continued growth in the ongoing wave.
As we close out 2025, the outlook for Royal Bank of Canada (RY) is strongly positive heading into the new year. We see the stock continuing its rally that began in April 2025, with a clear path toward $187.25 or even higher. This view is supported by the Canadian banking sector’s resilience, which saw a year-over-year revenue increase of nearly 8% in the third quarter of 2025.
For derivative traders, this means any short-term weakness should be viewed as a buying opportunity. Consider selling cash-secured puts on dips to collect premium, or use bull put spreads below recent support levels like $143. This strategy aligns with the strong performance seen after the company beat Q4 2025 earnings estimates, driven by growth in its wealth management division.
The stock’s reliable dividend, which has been paid consistently for over 150 years, adds a layer of security to bullish positions. With a current dividend yield hovering around 3.8%, getting assigned shares on a put option is a reasonable outcome for long-term investors. This stable return provides a floor for the stock during minor pullbacks.
Looking back from our perspective in late 2025, the major lows of March 2020 and October 2023 established the base for this powerful upward trend. The current rally is simply the next major phase of this long-term cycle. This historical pattern suggests the present momentum has significant staying power.
We anticipate a move into the $165.02 – $178.54 range in the immediate future before any meaningful correction. Implied volatility in RY options has recently contracted to a 52-week low of 16%, making long calls or call spreads an efficient way to position for this expected upside. We would use any pullback in the coming weeks to establish bullish positions, as long as momentum remains strong.
