Toronto-Dominion Bank (NYSE:TD) (TSE:TD), one of Canada’s largest banks, released its Q2-2023 financial results earlier today. The bank missed earnings estimates and provided a weak outlook for Fiscal 2023, which sent the stock lower. TD’s adjusted diluted earnings per share were C$1.94, missing the consensus estimate of C$2.08 and down from the previous year’s C$2.02. However, TD’s adjusted net income grew from C$3.714 billion to C$3.752 billion.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
TD’s CEO, Bharat Masrani, credited the bank’s robust customer originations and loan volumes for driving growth. He highlighted that investments in differentiated wealth and insurance products and the successful completion of the Cowen acquisition have significantly enhanced the bank’s competitive edge.
Further, TD’s Canadian Personal and Commercial Banking segment experienced a 4% rise in net income to C$1.625 billion, fueled by 11% revenue growth to C$4.404 billion. In the U.S., the Retail segment also posted encouraging numbers, with a 3% increase in net income to C$1.412 billion. Additionally, TD’s stake in Charles Schwab (NYSE:SCHW) brought in C$250 million in earnings, marking a 12% increase from the prior year.
Nevertheless, the Wealth Management and Insurance segment and the Wholesale Banking segment both saw drops in net income. Also, given the recent termination of the First Horizon (NYSE:FHN) merger and an uncertain macroeconomic landscape, TD doesn’t anticipate meeting its medium-term adjusted EPS growth target range of 7%-10% for Fiscal 2023.
Is TD Stock a Buy, According to Analysts?
According to analysts, TD stock comes in as a Moderate Buy based on six Buys and four Holds assigned in the past three months. The average TD stock price target of C$94.12 implies 20.1% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell TD stock, the most profitable analyst covering the stock (on a one-year timeframe) is Douglas Young of Desjardins, with an average return of 9.25% per rating and a 59% success rate. See below.
