Toronto-Dominion Bank (TD:CA) (TD)
Toronto-Dominion Bank had its 12 month target price increased by CIBC World Markets to $129.00 from $122.00, as the firm expressed growing confidence in TD’s earnings outlook and its ability to manage near-term regulatory and operational challenges. CIBC maintained its Outperform rating, signaling that it expects TD to outperform its Canadian banking peers over the coming year as credit conditions stabilize and revenue growth begins to re-accelerate.
Analysts also highlighted TD’s large U.S. retail banking footprint as a major competitive advantage. Although U.S. macroeconomic conditions have been mixed, TD’s scale in the eastern United States positions it to benefit from eventual interest-rate normalization and recovering loan demand. The analyst added that TD’s diversified revenue streams, including wealth management and insurance, help anchor earnings stability even during periods of rate volatility.
TD’s ongoing digital modernization efforts and operational efficiency initiatives are expected to support margin improvement and cost discipline. As a result, CIBC believes TD is well-positioned for a rebound in profitability once economic conditions improve, with potential upside from expanded net interest income, stronger loan growth, and disciplined expense management.
Overall, the raised target price reflects CIBC’s view that TD’s risk profile is improving, its earnings base is stabilizing, and its cross-border scale and strong capital foundation provide attractive long-term value relative to peers.
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