Update shared on27 Aug 2025
Fair value Increased 1.42%Toronto-Dominion Bank’s consensus price target was modestly raised to CA$103.71 as analysts cited improved near-term earnings prospects driven by declining loan losses and higher net interest income, partially offset by ongoing sector headwinds and macroeconomic uncertainty.
Analyst Commentary
- Improved sequential earnings prospects in Q3 based on declining losses on performing loans and higher net interest income.
- Ongoing sector headwinds, including macroeconomic uncertainty, the unresolved impact of tariffs, and concerns around mortgage renewals.
- Positive momentum from recent earnings, with several Canadian banks, including TD, exceeding consensus expectations in recent quarters.
- Bullish analysts point to an opportunity for outperformance and have upgraded ratings and price targets in response to fundamental improvements.
- Bearish analysts remain cautious, keeping more conservative recommendations despite modest price target increases, citing persistent risks and external pressures.
What's in the News
- TD Bank finalized a strategic partnership with Fiserv to enhance its TD Merchant Solutions business in Canada, offering clients Fiserv's advanced Clover payment technology and aiming to reduce costs and improve financial performance.
- The Toronto-Dominion Bank's preferred shares (TSX:TD.PFD) were removed from the S&P/TSX Preferred Share Index.
- TD announced the redemption of all 14,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class A First Preferred Shares, Series 7, effective July 31, 2025; final dividends will be paid.
- TD launched TD AI Prism, an internally built AI foundation model, to improve prediction of customer needs, personalize banking experiences, and accelerate business decision-making while maintaining data privacy.
- TD held an Analyst/Investor Day.
Valuation Changes
Summary of Valuation Changes for Toronto-Dominion Bank
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from CA$102.27 to CA$103.71.
- The Future P/E for Toronto-Dominion Bank remained effectively unchanged, moving only marginally from 14.72x to 14.89x.
- The Discount Rate for Toronto-Dominion Bank remained effectively unchanged, moving only marginally from 7.18% to 7.21%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.