Jefferies Lifts PT on The Toronto-Dominion Bank (TD) But Maintains a Hold Rating
Jefferies raised its price target on Toronto-Dominion Bank (TD) to C$151 from C$142 while keeping a Hold rating, citing broad fiscal Q2 contributions and better-than-forecast capital markets results. The firm said U.S. credit performance was strong and management expects lending to improve. TD reported fiscal Q2 ended April 30, 2026 diluted EPS of $2.43 (adjusted $2.38).
Analyst PT increase with unchanged rating suggests modest positive bias, but not a clear upgrade catalyst.
Jefferies raised TD’s price target to C$151 from C$142 while keeping a Hold, citing stronger-than-forecast capital markets and improving U.S. credit performance.
Likely limited near-term upside; more of a sentiment/valuation nudge than a re-rating.
Background
Jefferies’ May 28 update follows TD’s reported quarter ended April 30, 2026, where both reported and adjusted diluted EPS were lower year over year.
Why it matters
The key incremental takeaway is the analyst’s improved assessment of TD’s capital markets platform and U.S. credit performance, which can support valuation expectations even without a rating change.
Market relevance
For traders, this is a modest positive valuation/sentiment update rather than a definitive re-rating or fundamental inflection from TD itself.
Market effects
Supports the narrative that large Canadian banks’ U.S. credit/capital markets performance is stabilizing or improving.
Could modestly influence sentiment toward North American bank peers exposed to U.S. credit conditions.
Limited; primarily a single-name analyst revision rather than a cross-market macro shock.
Alternative perspectives
A higher PT with a Hold rating implies the broker still sees limited upside versus risk, so the market may already price the improvement.
The note references U.S. lending pick-up confidence, but the article doesn’t provide new TD guidance or quantify how much credit/lending will re-accelerate.
Key entities
- analyst_firmJefferies
Raised TD’s price target to C$151 from C$142 and maintained a Hold, citing better-than-forecast capital markets and compelling U.S. credit performance.
- companyToronto-Dominion Bank
Subject of the analyst price-target change; reported diluted EPS $2.43 (reported) and $2.38 (adjusted) for the quarter ended April 30, 2026.
