TD Bank upgraded to Outperform from Sector Perform at Scotiabank

Scotiabank upgraded TD Bank to Outperform from Sector Perform with a price target of C$93, up from C$86. With the stock now trading at an 8% discount to the group based on fiscal 2024 consensus earnings estimates, “fear has overtaken rationality” on TD, the analyst tells investors in a research note. The firm says concerns about the bank’s U.S. regulatory problems and worries about succession at the bank are all valid. However, the downside risk from both of those issues is more that fully priced into the shares right now, contends Scotiabank.