2023-05-29 17:02:07
The analyst notes that the results of operations in the capital markets have been weak. (Photo: 123RF)
What to do with TD Bank, Saputo and Tesla securities? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed by the analysts.
TD Bank (TD, $78.26): For its excess capital and the high quality of its banking operations in Canada and the United States, the Desjardins analyst recommends the purchase of the stock
Overall, TD Bank’s second quarter 2023 results should have a slightly negative impact, believes Doug Young, analyst at Desjardins Securities.
Earnings before taxes and provisions were up 10% from a year earlier, but were still 3% lower than the analyst had expected. Net interest margins also fell short of analyst expectations.
Despite these results, and given that the bank currently maintains excess capital and its banking operations are of high quality, Doug Young maintains his recommendation to buy, but he nevertheless reduces his target price from $104 to $98.
The bank posted earnings of $1.94 per share, while the Desjardins analyst had forecast $1.98 and the analysts’ consensus was for its part on $2.06.
Among the positive factors, the analyst notes non-interest expenses and a lower ratio of these expenses than he had anticipated. However, he notes that an ambitious growth strategy might push up that spending, and that uncertainty surrounding the raising of the debt ceiling in the United States might weigh on commercial loan growth south of the border in the short term. .
The bank closed the quarter with a tier one capital ratio of 15.3%, which exceeded Doug Young’s forecast. He notes that the bank’s board has approved a buyback program to total up to 30 million shares that management expects to complete by the end of the summer.
In terms of concerns, the analyst notes that the results of operations in the capital markets have been weak, and he fears that difficult market conditions will continue to weigh on the results in the short term.
Saputo (SAP, $35.35): With 10 days to report Q4 2023 results, BMO analyst maintains earnings per share forecast
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