Toronto-Dominion Bank (TD) PT Raised to $135 at BMO Capital

BMO Capital analyst Sohrab Movahedi raised the price target on Toronto-Dominion Bank (NYSE: TD) to $135.00 (from $128.00) while maintaining an Outperform rating.

The analyst commented: "TD (OP) has been returning capital to shareholders (active on NCIB) following the sale of its Schwab stake and making good progress on its U.S. AML/BSA remediation program (a multi-year undertaking). TD outlined a new strategic direction at its investor day (link) to restore profitability as measured by ROE by deepening client relationships, modernizing operations through AI, and unlocking growth, while maintaining disciplined cost, risk, and capital management. With a new operationally focused CEO now almost a year in the seat, we expect to see the benefits from the execution of its revised strategy (including restructuring measures) help the bank meet its medium-term ROE target of ~16% (by 2028). TD's capital position (CET1 ratio of 14.7%; Exhibit 18) provides downside protection if the economic outlook were to worsen. Our target price moves higher to $135 (previously $128) on a 2027E target P/E multiple of 13.1x (previously 12.4x)."

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