Bank stock Toronto-Dominion Bank (NYSE:TD) (TSE:TD) slipped slightly in Monday afternoon’s trading after an unexpected, and largely disastrous, fish story emerged. A literal fish story, too; as it turns out, TD Bank has been backing a lot of fishing plays lately. And many of them have gone south, like tuna left out for a week.
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One of the latest such bum plays for TD Bank came from Chester Basin Seafoods, who sought some more time to restructure its debts and the like from a bankruptcy and insolvency court. Chester Basin focuses primarily on exporting silver hake, which is actually related to cod, one of the most popular fish species around.
But Chester Basin had some troubles, not only with its debts but also with its boats. It needed to repair two of its vessels recently and managed to land a further loan to do the job, which didn’t sit well with TD Bank, its secured creditor. This is actually just the latest—the third, in fact—of seafood companies that lost ground, and TD Bank has around $39 million in loans involved in that sector.
The Loans are Shaky, but the Market is Brisk
By all accounts, this should have been a winner for TD Bank. A report from Future Market Insights revealed just how big the cod fish market is and will be in short order. It projects that the cod fish market will be worth around $46.015 billion by 2033. That should put operations like Chester Basin in a good position to offer related fish, especially if anything goes wrong with the cod supply in that time frame.
The demand for silver hake could take off accordingly, and Chester Basin could be in a good position to haul in the wins. Granted, that projection is still 10 years out, but given that Future Market Insights projected a 6.8% compound annual growth rate (CAGR) until then, there’s plenty of room for a win right now.
What is the Price Target for TD Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TD stock based on four Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 4.5% loss in its share price over the past year, the average TD stock price target of $68.15 per share implies 12.14% upside potential.
