Scotia analyst on tdMaintains outperform and $86 target price
Latest Research (October 11, 2024): OUR TAKE: Modestly Positive. Overall, we view the full resolution of TD’s US AML issues as a net positive for the stock as it removes a significant source of uncertainty that has been hanging over the name since the First Horizon deal fell apart back in May 2023. Although investors had been hoping that TD would evade any formal asset cap, our SoTP (sum of the parts) analysis has been consistently suggesting that the market was already pricing in a much more negative scenario that included a very significant deterioration in the bank’s earnings power (see Ex. 1 & 2). Based on TD’s updated disclosure we don’t see that happening, and in fact only revise down our F2025 EPS estimate by 1% (from $8.11 to $8.06). We will roll out our F2026 estimates when we publish our Q4 bank preview, but believe that US Retail segment earnings could actually be higher in that out year versus F2025.
I have 350 shares. I will just hold but we should see a correction towards $84-85