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

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