02:35 PM EDT, 08/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month target price by USD5 to USD55, 8.7x our FY 26 (Oct.) EPS view of CAD8.64 (USD6.28), below the peer average P/E of 12.1x to reflect the asset cap on TD's two U.S. banking subsidiaries. We increase our FY 25 EPS estimate to CAD8.12 from CAD7.95 and raise FY 26's to CAD8.64 from CAD8.46. TD Bank made significant progress this quarter in repositioning its investment portfolio and successfully achieving its targeted 10% reduction in U.S. assets. However, the regulatory woes continue to burden the bank's operations, driving expenses up by 13% during the quarter, a rate well above industry peers. This expense growth highlights a concerning trend for TD: while most peer banks are improving their operational efficiency, TD's efficiency ratio has worsened by 700 bps over the past five years. Given these mounting expense pressures, combined with weaker growth prospects compared to competitors, we believe other Canadian banks currently offer more attractive risk-return profiles for investors.