With further losses expected from the U.S. loan market, RBC Dominion Securities downgraded shares in TD Bank. Analyst Andre-Philippe Hardy downgraded the shares to "under perform" from "market perform," and dropped his 12-month price target to $49 from $53. The shares were trading for $41.76 Monday afternoon. "As is the case for other Canadian banks, our 12-month target is higher than the current trading price but we don't believe a sustained rally in bank shares is likely until economic and credit indicators strengthen," he wrote in a note to clients. While further losses are expected, Mr. Hardy said TD has performed better than its U.S. peers when it comes to credit losses, and "a focus on in-market lending, underwriting to hold, not participating in loans originated by brokers and avoiding the sub-prime market and exotic types of real estate lending" will help the bank get through the credit crisis.
RBC downgrades TD
Globe and Mail Blog Post
Last updated Thursday, Apr. 09 2009, 6:40 PM EDT