Toronto Dominion Bank (TD:CA), one of Canada’s largest financial institutions, is preparing to release its first-quarter 2025 financial results on February 27, 2025.
Amid heightened regulatory scrutiny and increased spending on risk management, stemming from its recent settlement over U.S. money-laundering charges. The bank is undergoing a strategic review.
These developments have left investors cautious as they await an update on how these challenges may impact TD’s near-term earnings and long-term growth trajectory.
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Expected Q1 Earning Report of Toronto Dominion Bank:
TD Bank Group has scheduled its Q1 2025 earnings release, along with a live conference call, at 9:30 a.m. ET. Analysts have revised their forecasts in light of the bank’s recent strategic shifts.
For example, Desjardins analyst D. Young has slightly increased his Q1 EPS forecast to around $1.34 per share, reflecting adjustments for higher risk and control expenditures. Other sources, including consensus estimates compiled by platforms like TipRanks, suggest an EPS forecast closer to $1.97 per share.
Although revenue growth is expected—driven by strong volumes in the Canadian Personal and Commercial Banking segment—heightened spending on enhancing anti-money-laundering systems and compliance measures may exert pressure on profit margins.
Stock Target Advisor’s Analysis on Toronto Dominion Bank:
Stock Target Advisor’s rating for TD is Slightly Bearish with a target price of CAD 89.19, projecting a potential 12-month price change of +2.89%.
Based on the Toronto Dominion Bank stock forecast from 14 Analysts, the average analyst target price for Toronto Dominion Bank is CAD 87.83 over the next 12 months. Toronto Dominion Bank’s average analyst rating is Buy.
Stock Target Advisor’s own stock analysis of Toronto Dominion Bank is Slightly Bearish, which is based on 3 positive signals and 6 negative signals. At the last closing, Toronto Dominion Bank’s stock price was CAD 86.69.
Toronto Dominion Bank’s stock price has changed by +4.69% over the past week, +8.49% over the past month, and +10.29% over the last year.
Recent Analyst Ratings and Targets:
- CIBC World Markets: Outperform, Target CAD 90 (02/11/2025)
- Morningstar: Buy, Target CAD 92 (02/04/2025)
- Scotia Capital: Sector Perform, Target CAD 81 (01/22/2025)
Conclusion:
As TD Bank Group unveils its Q1 2025 results, investors should be prepared for mixed signals. Although strong fundamentals and a robust market presence provide a cushion, increased regulatory costs and the ongoing strategic review may dampen near-term earnings.
Market participants will be closely watching the upcoming earnings call for insights into TD’s future growth plans and its strategy for managing risk in a challenging economic landscape.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
