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

Toronto-Dominion Bank's positive outlook is bolstered by a notable increase in its personal and commercial banking segment, which saw an uptick of 15 basis points to 3.19%. Additionally, the bank's earnings per share (EPS) estimates for fiscal 2025 and 2026 have been revised upward by 2% to $8.19 and 3% to $8.86, respectively, reflecting a positive trend in performance and an improved credit outlook in Canadian operations. With over CAD 2 trillion in assets and a strong presence in both Canadian and US markets, TD Bank's diversified business model positions it well for sustained growth.

The core cash earnings per share (EPS) for Toronto-Dominion Bank was reported at $2.20, which exceeded both the internal estimate of $2.10 and the market consensus of $2.05 by 5% and 7%, respectively. Despite this positive earnings performance, the strong reliance on Canadian revenue—over 50%—and a substantial operational footprint in the U.S. could pose risks given potential economic headwinds affecting both markets. Furthermore, the bank's significant market share in nearly all banking products could indicate overexposure to domestic economic fluctuations, contributing to a cautious outlook on its stock performance.