CIBC noted TD Bank (TD.TO, TD) reported a "solid" second quarter, including in credit. Expense efficiencies were better than CIBC had expected and CIBC has revised its forward assumptions, resulting in higher EPS estimates. CIBC noted TD was trading at 15.3x P/E (NTM consensus), a 6% premium to the group average and effectively in line with RBC (RY.TO, RY). "We like the results, but valuation remains a challenge for us," CIBC added.
CIBC's price target increases from $151 to $164 based on revised EPS estimates and a higher target multiple for the group. CIBC reiterated its Neutral rating.
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Price: $156.49, Change: $+0.31, Percent Change: +0.20%