TD BankTD.PR.T.TOTOP PICKFeb 22, 2018Stock price when the opinion was issued
We think $78 is a good buying starting point.
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Shareholders in company - current share price a good place to buy. Fines and anti-money laundering investigations a concern for investors. Large amounts of money will be involved to beef up compliance requirements. Appears regulator won't be too harsh on company. Will continue to own share - is a dominant franchise with good business prospects.
Canada has a banking oligopoly. The banks are a cornerstone in their portfolios. TD is the second largest bank. 15 ROE. Trades at 13.5 times earnings. Should benefit from interest rates increases in the US and lower tax rates. Now and perennially a great bedrock to a Canadian Equity portfolio. (Analysts’ price target is $80.03)