Opinions
Dan Rohinton
Toronto-Dominion Bank
TD-T
PARTIAL SELL
Sep 24, 2025
Stock price when the opinion was issued
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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.
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.
He isn't a technical trader, so doesn't look at volumes. TD had a lot to catch up on after the money-laundering penalty, and changed the CEO. After a rally the valuation is realigning, which could account for lower volumes. Given the penalty, they are limited in expanding in the US.
Don't add at these levels. Last quarter was a beat, better on credit loss provisions. Still potential headwinds in US with US retail. Trading in line with the group, no longer at a discount. Decent growth of ~7%.
A great time to sell some calls on it. He wouldn't add to this one, but would to BMO and CM.
Best-performing bank this year. (Let's ignore capital gains and tax losses for simplicity in answering the question.) Looking ahead, no longer at the compelling value it was before. Great job clearing up concerns over asset cap.
Whole Canadian banking sector is fully valued, trading effectively at record highs on valuation. Not time to load up. Time to take some profits and invest in more defensive names, as Canadian economy is on a more fragile footing than other parts of the world.