Update shared on 29 Nov 2025
Fair value Increased 4.41%The analyst price target for Toronto-Dominion Bank has been raised from C$113.14 to C$118.13. This change reflects analysts' improved outlook as the bank demonstrates steady progress and management discipline, despite ongoing challenges.
Analyst Commentary
Recent research activity has highlighted a shift in sentiment around Toronto-Dominion Bank, with several firms adjusting their price targets and providing insights into the bank's prospects. Views remain mixed as the bank demonstrates both notable progress and persistent challenges.
Bullish Takeaways- Bullish analysts have raised their price targets for TD, pointing to steady progress under new leadership and improved operational discipline following recent investor events.
- Improvements in medium-term earnings guidance, with a target of 7% to 10% EPS growth and return on equity goals near 16%, have been received positively and considered in valuation upgrades.
- Expectations for stronger U.S. retail earnings and higher share buybacks are contributing to an optimistic outlook for TD's capital deployment and earnings growth potential.
- Some believe consensus forecasts for Canadian banks are conservative, indicating TD may be well-positioned to exceed investor expectations in the near term.
- Bearish analysts are cautious given TD's considerable year-to-date share price increase, viewing the stock as less attractive on a risk-reward basis after recent gains.
- Ongoing regulatory headwinds in the U.S., specifically the imposed asset cap due to anti-money laundering compliance failures, continue to create an overhang and operational uncertainty.
- Execution risk remains a concern as TD works to deepen client relationships and streamline operations while maintaining cost and capital discipline in a challenging environment.
What's in the News
- Ten major banks, including TD Bank, are exploring the issuance of stablecoins pegged to G7 currencies, according to a Reuters report. (Reuters)
- TD Bank Group announced an expansion of its low-cost and no-cost banking options for Indigenous Peoples from Canada, offering the TD Minimum Chequing Account with no monthly fee and enhanced features starting November 28, 2025.
- TD, as a founding member of the MIT Media Lab's sAIpien program, is collaborating to explore advanced uses of AI in banking with a focus on responsible and inclusive applications.
- TD Bank Group launched a new Wealth Virtual Assistant, a generative AI-powered tool to improve operational effectiveness and client support for its wealth management team.
Valuation Changes
- Consensus Analyst Price Target has increased from CA$113.14 to CA$118.13, reflecting a higher valuation assigned to the stock.
- Discount Rate has decreased marginally from 7.26% to 7.26%. This indicates only a slight shift in perceived risk.
- Revenue Growth expectations, while still negative, have improved from -3.65% to -3.08%.
- Net Profit Margin forecasts have dipped modestly from 24.91% to 24.48%.
- Future P/E ratio has risen from 15.65x to 16.33x, suggesting higher forward earnings multiples are being applied in current valuations.
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.