On Thursday, BMO (TSX:BMO) Capital Markets adjusted its outlook on Toronto-Dominion Bank (TSX:TD:CN) (NYSE: TD), reducing the price target to C$84.00 from the previous C$86.00. The firm maintained a Market Perform rating on the bank's shares.
This revision follows the bank's recent earnings report, which revealed an adjusted cash earnings per share (EPS) of $2.04, excluding certain one-time items. This figure surpassed the anticipated EPS of $1.84 to $1.85 by both the firm and the consensus.
Toronto-Dominion Bank's performance exceeded expectations in several areas, notably in Wealth & Insurance due to increased insurance premiums and market appreciation, as well as in Wholesale Banking which saw a rise in lending, underwriting, and trading revenue. However, the bank's Provision for Credit Losses (PCL) was reported at 47 basis points, which was higher than the anticipated 40 basis points.
The bank's Common Equity Tier 1 (CET1) ratio, a key measure of financial strength, decreased by 50 basis points quarter-over-quarter, landing at 13.4%. The report did not provide any new information regarding the ongoing U.S. Anti-Money Laundering (AML) investigations.
InvestingPro Insights
As Toronto-Dominion Bank (NYSE: TD) navigates the financial landscape, real-time data from InvestingPro provides a comprehensive perspective on the bank's current valuation and performance. With a market capitalization of $96.67 billion and a P/E ratio that has improved to 11.05 in the last twelve months as of Q1 2024, TD shows signs of being reasonably valued in the market. The bank's revenue growth has been steady, with a 4.91% increase over the last twelve months as of Q1 2024, and an even more impressive quarterly revenue growth of 10.44% in Q1 2024.
InvestingPro Tips highlight that Toronto-Dominion Bank has a strong track record of dividend reliability, having raised its dividend for 13 consecutive years, and maintained dividend payments for an impressive 52 consecutive years. This commitment to shareholder returns is further underscored by a dividend yield of 5.35% as of April 2024. Additionally, analysts have shown confidence in the bank's future by revising their earnings upwards for the upcoming period.
For investors looking for deeper insights and additional InvestingPro Tips, visiting https://www.investing.com/pro/TD can provide a broader analysis. There are currently 9 more tips available on InvestingPro. To access these valuable insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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