Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, Jefferies increased the price target on Toronto-Dominion Bank (TSX:TD:CN) (NYSE: TD) shares to Cdn$103.00 from Cdn$95.00, while reiterating a Buy rating on the stock. The adjustment follows Toronto-Dominion Bank’s strong performance in the second quarter, which is anticipated to boost consensus estimates. According to InvestingPro data, the stock is currently trading near its 52-week high, with an impressive year-to-date return of nearly 25%.
The bank’s Q2 results surpassed expectations, primarily due to lower than expected provisions for credit losses. The market has responded positively to the earnings report, reflecting the bank’s robust financial outcome. As a prominent player in the banking industry with a market capitalization of $117.4 billion, TD Bank has maintained dividend payments for 53 consecutive years, currently offering a 4.57% yield. Jefferies analysts point out that the bank’s U.S. restructuring efforts are progressing as planned, contributing to the positive outlook.
Toronto-Dominion Bank announced certain charges in the quarter that are expected to enhance overall bank efficiencies and potentially lead to further upside. These charges are part of the bank’s broader restructuring efforts to streamline operations. InvestingPro analysis reveals several additional insights about TD’s performance and outlook - unlock access to over 10 exclusive ProTips and comprehensive financial metrics.
Furthermore, Toronto-Dominion Bank has managed to rebuild its capital levels, which is likely to reinforce investor confidence in its financial stability. The improved capital position is a significant factor in the bank’s ability to maintain its growth trajectory and manage potential risks.
The price target increase by Jefferies reflects the firm’s confidence in Toronto-Dominion Bank’s strategic initiatives and its ability to sustain performance. The bank’s recent financial results and operational developments have clearly resonated with analysts and investors alike.
In other recent news, Toronto Dominion Bank (NYSE:TD) reported impressive financial results for the second quarter of 2025, surpassing analyst expectations. The bank’s earnings per share (EPS) were $1.97, exceeding the forecasted $1.83, and revenue reached $15.1 billion, outperforming the anticipated $13.61 billion. The strong performance was supported by robust trading and fee income, as well as a solid Common Equity Tier One (CET1) ratio of 14.9%. Additionally, TD Bank repurchased 30 million shares, contributing to shareholder value.
The bank is also making strategic moves by exiting its U.S. point-of-sale financing business to focus on its proprietary bank card operations. This decision aligns with TD’s broader strategy to streamline operations and enhance return on equity. Analysts have noted TD’s effective management and operational strength, with firms like Canaccord Genuity and Jefferies seeking clarity on TD’s strategic initiatives and capital deployment.
TD Bank plans to host an Investor Day on September 29 to present its refreshed medium-term financial targets, highlighting its ongoing strategic review and restructuring efforts. Despite macroeconomic uncertainties, the bank remains focused on growth opportunities and maintaining a strong capital position. Future guidance from TD includes a net interest income benefit of $300-$500 million in fiscal 2025, reflecting ongoing efforts to optimize its balance sheet and investment portfolio.
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