Barry Schwartz Toronto-Dominion Bank TD-T BUY Nov 25, 2020

Has delivered returns long term, but it remains in the penalty box--they can't make acquisitions in the US. This impacts growth for the next few years. They will probably build up excess capital and buyback shares and through dividends.

Can go higher. Still doubt after US fine, so hasn't fully recovered. Back on track. Once that issue gets further in the rearview mirror, people will bid the shares up. Great buy-and-hold, same category as RY. 

TD's been the best over his career. US issue hit hard. Canadian business is solid and extremely well run. Can't expand the US business, but can upgrade it, so he's not too concerned. Still a large holding, but he's been selling it down and putting profits into BNS.

Price targets give an illusion of precision that doesn't really exist, so his firm doesn't do them. If they own a stock, safe to say their target is "higher".

Likes personal and commercial business in Canada. US trouble is behind them, though they'll need to earn their way out of the regulatory doghouse. And they will. Investor Day on September 29 should shed light on medium-term strategy. Expects they can hit their aspirational 7+% EPS growth.

Took partial profits about 2 months ago, after massive re-rating.

The question asked the guest to compare the two with a view to buying one of them. She prefers Royal Bank right now. It just delivered record results and is growing at 10% year over year. TD has gone through a rough patch and is re-structuring which is eating into profits. She doesn't think Royal Bank will split.

The Canadian bank charts look similar. TD has seen a nice bounce since April, despite being the bank with the most problems and cannot grow in the US. A rising tide lifts all boats/banks. He got rid of it to buy BMO, which is a much-better run bank, maybe a little too soon. He is bullish Canadian banks, overall as the economy picks up. The bargain price for TD is over, but it will take time to return to its premium valuation. Prefers Royal and National banks.

Underperformed peers last 2 years, but has caught up some since US mess put to bed. New management seems really good. New strategy to be laid out on September 29th investor day. Despite cap, still lots of opportunity in US.

It is up 30 to 35% this year which is a phenomenal move for a Canadian bank. It is due for a breather.

Prefers this one and remaining peers today to RY, just on valuation. Though RY is the best bank in Canada, this name trades at a far better multiple.

Look at beginning of 2022 on the chart -- stock recently broke through that level. So you'll get some new buyers and less resistance. Historically, financials have some pretty big upside this time of year. If you own, no reason to sell. If you're overweight, look to trim (perhaps in December). 

Lots of concern for banks, but the market doesn't seem to see it. Follow the market and don't overthink it too much.