08:24 AM EDT, 05/25/2023 (MT Newswires) -- Toronto-Dominion Bank's (TD.TO) earnings miss was due to lower-than-forecast revenues, not the higher expenses that impacted its peers, Barclays said on Thursday.
"TD missed earnings, despite lower than forecast provisions, on the back of lower than anticipated revenues," analyst John Aiken said in a note to clients.
"While TD's expenses did come in below expectations, we believe that the relative performance of its US retail bank segment in the quarter will raise some questions," Aiken said.
The analyst said TD's US deposit outflows were not a concern, other than those with Charles Schwab.
"While credit and its own deposit performances were solid, we do not believe that the less than 2% share repurchase plan will generate much valuation support," Aiken said.
The analyst maintained an Equal Weight rating and $83 price target on TD shares.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)