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Research Alert: CFRA Reiterates Hold Opinion On Shares Of The Toronto-dominion Bank

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Following strong Q2 results, we raise our 12-month target price by CAD22 to CAD173, 16.6x our FY 27 (Oct.) EPS view of CAD10.42, above the peer average P/E of 13.9x, as superior credit quality and improving efficiency outweigh headwinds stemming from the asset cap on TD's two U.S. banking subsidiaries. We increase our FY 26 EPS estimate to CAD9.65 from CAD9.37 and bump up FY 27's to CAD10.42 from CAD10.22. Raymond Chun's strong performance as TD's new CEO has carried into 2026, with notable improvements across key metrics. Superior credit quality versus peers and disciplined expense management position TD to exceed its FY 2026 guidance, and we now expect 15% EPS growth (vs. 6-8% guidance) and adjusted ROE above 14% (vs. 13% guidance). However, we believe the stock already reflects this outperformance, as shares currently trade at their highest valuation since before the financial crisis, representing a 43% premium to the bank's 10-year average forward P/E.

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