CIBC has revised its price target for TD Bank (TD, Financial), reducing it slightly to C$94 from a previous estimate of C$95. Despite this adjustment, the bank retains its Outperform rating on TD's shares, indicating continued confidence in the company's future performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for The Toronto-Dominion Bank (TD, Financial) is $66.73 with a high estimate of $68.77 and a low estimate of $62.32. The average target implies an upside of 3.06% from the current price of $64.75. More detailed estimate data can be found on the The Toronto-Dominion Bank (TD) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, The Toronto-Dominion Bank's (TD, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Toronto-Dominion Bank (TD, Financial) in one year is $66.24, suggesting a upside of 2.31% from the current price of $64.745. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Toronto-Dominion Bank (TD) Summary page.
TD Key Business Developments
Release Date: February 27, 2025
- Earnings: $3.6 billion.
- EPS: $2.02.
- CET1 Ratio: 13.1%, pro forma 14.2% after Schwab stake sale and share buyback.
- Revenue Growth: 9% year over year.
- Expense Growth: 12% year over year.
- Net Interest Margin (Canada): 2.81%, up 1 basis point quarter over quarter.
- Net Interest Margin (US): 2.86%, up 9 basis points quarter over quarter.
- Loan Growth (Canada): 4% year over year.
- Deposit Growth (Canada): 5% year over year.
- Loan Growth (US): 1% year over year, 3% excluding loans for sale or runoff.
- US BSA/AML Remediation Cost: USD 86 million for the quarter, expected USD 500 million for fiscal 2025.
- Allowance for Credit Losses: Increased by $457 million to $9.6 billion.
- Gross Impaired Loans: $5.45 billion, up $504 million quarter over quarter.
- Wholesale Banking Revenue: Over $2 billion for the first time.
- Wealth Management New Institutional Mandates: $3.2 billion.
- Insurance Gross Written Premium Growth: 13% year over year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Toronto-Dominion Bank (TD, Financial) delivered strong earnings of $3.6 billion and EPS of $2.02 in Q1 2025.
- The bank's CET1 ratio was 13.1%, and pro forma for the sale of its Schwab stake and share buyback, it would be approximately 14.2%, indicating a strong capital position.
- TD's Canadian Personal and Commercial Banking saw volume growth and strong trading and fee income in market-driven businesses.
- TD Auto Finance achieved record originations in Q1, adding new dealer floor plan relationships.
- TD's Wealth Management and Insurance segments delivered record revenue, earnings, and assets, with new accounts up 30% year-over-year.
Negative Points
- Tariff and trade risks are clouding the economic outlook, potentially impacting provisions and credit quality.
- Expenses increased 12% year over year, driven by governance and control investments and higher PCLs.
- US AML remediation remains a top priority, with significant costs expected, including $500 million in fiscal 2025.
- The bank's provision for credit losses increased to 50 basis points, reflecting policy and trade uncertainty.
- The strategic review is ongoing, with potential for further restructuring and cost optimization, which may impact future expenses.
