Average Analyst Consenus-Hold
TD Bank Analysis and Forecast:
The average price target for Toronto Dominion Bank stock over the next year according to the projections of 18 different analysts is CAD 94.44. These projections are based on the stock of Toronto Dominion Bank. The consensus recommendation among Toronto Dominion Bank analysts is to Maintain a Hold position. The stock analysis by Stock Target Advisor on Toronto Dominion Bank is Slightly Bullish. This conclusion was reached on the basis of 6 positive signals and 5 negative signals. The price of a share of Toronto Dominion Bank was CAD 87.67 at the time the market closed most recently. Over the past week, the price of Toronto Dominion Bank stock has decreased by 0.75%, while over the past month it has decreased by 5.08%, and over the past year it has decreased by 9.60%.
Analyst Coverage Update:
On Wednesday January 4th, STA Research reiterated the Underperform rating on TD’s stock, and maintained the 12 month stock target price at $70 per share. STA Research believes the stock is currently overvalued, as most Canadian Banks are facing severe international and domestic headwinds, from both a macro and micro setting.
Domestic Housing Concerns:
The Canadian housing market may be considered overvalued, as some suggest it is currently experiencing the worlds biggest housing bubble. One reason is that demand for housing has outstripped the supply of homes available for sale in some markets, which can drive up prices. Another reason is that low interest rates have made it easier for people to borrow money to buy homes, which may have contributed to higher prices. Additionally, there may be speculation or investor activity in the market that is driving up prices. It’s worth noting that the housing market can vary significantly from one region to another, so it’s possible that some parts of Canada may be experiencing more overheating than others. As a consequence investors must the associated risks that the housing market emits on the balance sheets of Canadian Banks, including TD Bank.
TD Bank may also face specific risks related to its operations in different countries, and it may be exposed to risks related to its investment activities.
Positive Fundamentals of TD Stock:
On positive side, the basic fundamentals of TD Bank are attractive and include its strong financial performance, diversified business operations, and customer satisfaction.
- Financial performance: TD has consistently reported strong financial results, with a history of steady earnings growth and a strong balance sheet. In 2020, the bank’s net income was $12.5 billion, and it had a return on equity (ROE) of 16.3%.
- Diversified business operations: TD has a diversified business model, with operations in retail banking, wealth management, and wholesale banking. This diversification helps to mitigate the impact of economic downturns in any one particular area.
- Customer satisfaction: TD has consistently ranked highly in customer satisfaction surveys, with a reputation for good service and a wide range of products and services to meet customer needs.
In conclusion these factors contribute to TD’s strong financial position as a leading financial institution in Canada and the United States. These positive fundamentals may help reduce the aforementioned risk the bank will face this year and beyond, as the market digests the mortgage and loan risk of various overpriced assets.
About Toronto Dominion Bank:
The Toronto-Dominion Bank, in conjunction with its numerous subsidiaries, offers a wide range of financial goods and services across the globe, including in Canada, the United States, and other countries. It conducts business in the segments of personal and commercial banking in Canada, retail banking in the United States, wealth management and insurance, and wholesale banking in the United States. The company provides banking services to businesses, including financing, investment, cash management, international trade, and day-to-day banking services. Additionally, the company provides financing options to customers at the point of sale for the purchase of automobiles and recreational vehicles. In addition, it offers credit cards and payments, real estate secured lending, auto finance, and consumer lending services, point-of-sale payment solutions for large and small businesses, wealth and asset management products, and advice to retail and institutional clients through direct investing, advice-based, and asset management businesses, property and casualty insurance, life and health insurance products, as well as reinsurance products. Capital market products and services, as well as corporate and investment banking products and services, are also offered by the company. These products and services include the underwriting and distribution of new debt and equity issues, as well as advice on strategic acquisitions and divestitures, as well as trading, funding, and investment services to corporations, governments, and institutions. It does business under the names TD Bank and America’s Most Convenient Bank, under which it sells its wares and provides its services. The organisation provides banking services via telephone, digital, and mobile platforms in addition to operating a branch network that includes 1,060 locations in Canada and 3,401 automated teller machines (ATMs). In the United States, the organisation operates 1,160 stores and 2,693 ATMs. The Toronto-Dominion Bank was established in 1855.