CIBC has increased its price target for TD Bank (TD, Financial) from C$96 to C$99, reiterating an Outperform rating on the stock. This adjustment reflects a positive outlook on the bank's potential performance. Investors are encouraged to consider TD Bank as a strong candidate for their portfolios, given the firm's optimistic evaluation. The revised target suggests confidence in TD Bank's ability to achieve growth and deliver value to its shareholders.
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 $70.72 with a high estimate of $74.87 and a low estimate of $67.83. The average target implies an upside of 1.16% from the current price of $69.91. 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 $70.61, suggesting a upside of 1% from the current price of $69.91. 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: May 22, 2025
- Earnings: $3.6 billion
- Earnings Per Share (EPS): $1.97
- Common Equity Tier 1 (CET1) Ratio: 14.9%
- Share Buyback: 30 million shares repurchased for $2.5 billion
- Revenue Growth: 9% year over year
- Net Interest Margin (NIM) - Canadian Personal and Commercial Banking: 2.82%
- Net Interest Margin (NIM) - US Retail: 3.04%
- Loan Growth - Canadian Business Banking: 6% year over year
- Loan Growth - US Retail: 2% year over year
- Wealth Management Revenue Growth: 13% year over year
- Insurance Gross Written Premium Growth: 10% year over year
- Wholesale Banking Revenue: $2.1 billion
- Provision for Credit Losses (PCL): Increased by $129 million quarter over quarter
- Allowance for Credit Losses: $9.6 billion
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 a strong quarter with earnings of $3.6 billion and EPS of $1.97, driven by robust trading and fee income.
- The bank's CET1 ratio was 14.9%, indicating a strong capital position, and it repurchased 30 million shares for a total of $2.5 billion.
- TD's Wealth Management and Insurance segment showed strong performance, with TD Asset Management adding $5.3 billion in net institutional assets.
- The bank is making significant progress in its US AML remediation efforts, enhancing transaction monitoring and investigative practices.
- TD is investing in digital and AI capabilities, including opening a new office for Layer 6, its AI research center, and deploying a generative AI virtual assistant across its branch network.
Negative Points
- Macroeconomic and policy uncertainty, including tariff issues between the US and China, is creating economic distortions and volatility in capital markets.
- Housing activity in Canada has slowed, and the job market has softened, particularly in trade-exposed sectors.
- The bank is winding down its US point-of-sale financing business due to its lack of profitability and scalability.
- TD incurred restructuring charges of $163 million pretax this quarter and expects total restructuring charges of $600 million to $700 million pretax over the next several quarters.
- The bank's provision for credit losses increased by $129 million quarter over quarter, reflecting policy and trade uncertainty.
