The Globe and Mail reports in its Friday, Dec. 5, edition that TD Cowen analyst Mario Mendonca, after Royal Bank of Canada posted better-than-anticipated fourth quarter results he deemed "strong," upgraded his recommendation to "buy" from "hold," in response to a period of underperformance versus its peers. The Globe's David Leeder writes that Mr. Mendonca's share target soared $31 to $246. Analysts on average target the shares at $228.46. Mr. Mendonca says in a note: "In 2025, RBC has been the worst performing stock among the Big Six and the stock now trades at a modest 3-per-cent premium to the group. In upgrading the stock, we are setting our target P/E at 7-per-cent premium to group. When RBC is functioning at a materially higher level, the premium can reach 10 per cent or more. The 17-per-cent-plus ROE grows BV faster and provides greater flexibility for organic/acquisitive growth and buybacks. Finally, our estimates are also higher than consensus which we believe also supports our upgrade." Shares of RBC surged $5.42 to close at $224.06 Wednesday in Toronto after it posted a boost in fourth quarter earnings on rising capital markets and wealth management activity as the lender raised its profitability target.