Barclays Maintains an 'Overweight' on TD Bank Financial (TD); Strong Headline Results Fail to Impress

Barclays maintains an 'Overweight' on TD Bank Financial (NYSE: TD) price target of C$87.00.

Barclays analyst says, "TD closed out the year with solid fourth quarter earnings, capping strong year-over-year results. However, given the fact that Q4 earnings were buoyed by some unsustainable revenues (securities fees and a strong rebound in trading), the results were met by a less than enthusiastic welcome by the markets. TD shares were down by over 2% (TSX down 74 bps), lagging its domestic peers with the exception of Scotia."

"Although there are several factors that the bears can point to, we note that many of the headwinds it faces are not exclusive to TD. In fact, we believe that TD retains strong relative upside, largely predicated on the success that it has enjoyed in growing its U.S. loan portfolio. While challenges do exist, we believe that TD retains greater earnings upside than most of its peers, while facing the same revenue headwinds."

Barclays lowers FY11 EPS estimate from $6.92 to 6.85

For an analyst ratings summary and ratings history on TD Bank Financial click here. For more ratings news on TD Bank Financial click here.

Shares of TD Bank Financial closed at $70.88 yesterday.

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