The Toronto-Dominion Bank (TSE:TD) (NYSE:TD) has been receiving a moderate buy rating from ten ratings firms, according to Bloomberg reports. With a hold recommendation from two equities research analysts and a buy recommendation from eight other brokerage companies, the bank has earned a favorable consensus rating. These positive endorsements highlight the strength of TD’s performance in its industry.
Based on the average 12-month target price issued by brokers, which is at C$93.43, it is clear that TD is expected to keep flourishing in the coming months. Given this promising projection, investors and stakeholders can continue to reap significant benefits while supporting TD’s strong financial figures.
On May 25th, while announcing its quarterly earnings results, TD reported C$1.94 earnings per share for the quarter; unfortunately missing analyst projections of C$2.06 by C($0.12). Nevertheless, its net margin of 30.33% and return on equity of 13.75% confirm that it remains an excellent investment opportunity in Canada’s financial sector.
While it was initially speculated that TD would post 8.3629783 EPS for the fiscal year end; these projected figures might change depending on how market trends pan out in future quarters – if they continue to align with current assessments, then it is reasonable to expect that this digital-first bank will exceed initial estimates.
In conclusion, given the optimistic projections and overall positive performance of The Toronto-Dominion Bank as evidenced by analysts’ recommendations obtaining both double-digit percentages for holds and buys respectively; all signs point towards a continued upward trajectory for this premier bank within our North American marketplace.
TD Bank Receives Mixed Reviews from Analysts: Fluctuating Market Signals
Toronto-Dominion Bank (TSE:TD) has recently been the subject of many brokerage opinions. While some analysts recommend purchasing the stock, others have lowered their price targets or ratings. Cormark, for instance, reduced its price target from C$98.00 to C$95.00 at the end of May. Similarly, CIBC lowered its price target to C$94.00 from C$97.00 on the same day.
However, not all opinions about TD are bearish. Fundamental Research set a higher target price of C$99.25 and gave the stock a “buy” rating in early June; CSFB upgraded TD’s rating from “neutral” to “outperform,” while also raising its price objective from $85 to $88.
Despite this varying analysis, it remains apparent that TD is experiencing fluctuation in the market: BMO Capital Markets dropped their target price on shares of Toronto-Dominion Bank from C$85.00 to C$83.00 in May—a signal that investors may view TD as a less desirable option.
On Friday, TSE:TD opened trading at an even lower mark of just $78 per share—putting it further below some brokers’ previous price targets.
Over the past year, TD has ranged between a high of C$94.05 and low of C$76.32, with current 200-day moving average resting at $84.74—a level higher than what we’re seeing this week.
Despite mixed signals about where TD is headed specifically, it’s important to note that company-wide conditions also play a role in how these ratings evolve, especially given that pandemic lockdowns continue around Canada more broadly.
As such, we will be monitoring developments in both go-to-market strategy for banks as well as how share performance evolves around Canadian markets more generally over coming weeks and months before passing any further judgment on specific banks or financial institutions.
Source: beststocks.com
