Toronto-Dominion Bank (TD) Stock Forecast & Price Target

Toronto-Dominion Bank's P&C Banking division has reported an increase in profitability, with a notable uptick of 15 basis points to 3.19%, reflecting strong performance in its core operations. The bank's earnings per share (EPS) estimates for fiscal year 2025 have risen by 2% to $8.19, and the fiscal year 2026 EPS estimates have increased by 3% to $8.86, driven by an improved credit outlook in Canadian P&C Banking. With over CAD 2 trillion in assets and a significant revenue contribution from both Canadian and US markets, TD Bank demonstrates a robust financial position and growth potential across its diversified business segments.

Toronto-Dominion Bank reported a core cash earnings per share (EPS) of $2.20, which exceeded internal estimates and consensus forecasts by 5% and 7%, respectively. Despite this positive earnings result, concerns may arise from the bank's heavy reliance on the Canadian market for over 55% of its revenue, which could pose risks amid potential domestic economic challenges. Additionally, the bank's substantial exposure to the U.S. market, while contributing nearly 40% of revenue, may present vulnerabilities in the face of fluctuating economic conditions across its operational footprint from Maine to Florida.