Toronto-Dominion Bank (TSX:TD) Maintains Strong Performance Despite Challenges

• Jefferies maintains a "Buy" rating for Toronto-Dominion Bank (NYSE:TD), raising the price target to C$120 from C$117.
• TD Bank exceeds earnings expectations with third-quarter adjusted earnings per share of C$2.20, surpassing the analyst consensus estimate of C$2.05.
• Revenue growth and prudent financial management contribute to TD's strong market position, with third-quarter revenue reaching C$15.3 billion and a notable contribution from the Wealth Management and Insurance division.

Toronto-Dominion Bank (TSX:TD) is a major Canadian bank with a strong presence in both Canada and the United States. It offers a wide range of financial services, including personal and commercial banking, wealth management, and insurance. TD competes with other large banks like Royal Bank of Canada and Bank of Montreal. On August 28, 2025, Jefferies maintained its "Buy" rating for TD, with a "hold" action, and raised the price target to C$120 from C$117. At that time, TD's stock price was $73.12.

Despite facing regulatory penalties and asset cap restrictions in the U.S., TD Bank has reported earnings that exceeded expectations. The bank's strong performance is evident in its third-quarter 2025 results, where it announced adjusted earnings per share of C$2.20, surpassing the analyst consensus estimate of C$2.05, as highlighted by LSEG Data & Analytics. This robust performance has helped TD's shares rise over 30% in the past year, standing 40% above the lows seen in December.

TD's revenue for the third quarter reached C$15.3 billion, up from C$14.2 billion in the same quarter the previous year. The Canadian personal and commercial banking division played a significant role in this growth. Additionally, the bank allocated C$971 million for potential loan losses, which was below the analyst forecast of C$1.26 billion. This prudent financial management has contributed to TD's strong market position.

The Wealth Management and Insurance division also made a notable contribution, with net income rising 63% to C$703 million. TD anticipates generating C$100 million in savings this fiscal year and expects annual savings of C$550 million to C$650 million in the coming years. Despite these positive results, US-listed shares of TD fell nearly 4% to $73.20 in early Thursday trading, reflecting investor concerns about ongoing legal issues and regulatory challenges.

Currently, TD's stock price is $73.11, showing a decrease of 3.98% or $3.03. The stock has fluctuated between a low of $72.90 and a high of $78.95 today. Over the past year, it reached a high of $78.95 and a low of $51.25. TD has a market capitalization of approximately $128.07 billion, with a trading volume of 2,705,029 shares on the NYSE.