TD Bank upgraded at Scotiabank on cost reduction potential

Scotiabank upgraded TD Bank (TD) to Outperform from Sector Perform with a price target of C$150, up from C$142. The firm puts “increasing weight on the cost side of the P&L in light of potential revenue headwinds that could materialize for the group over the medium-term,” particularly related to net interest income given higher rates and elevated leverage in the Canadian market, the analyst tells investors in a note on the group. The firm’s proprietary analysis on branch proximity shows TD to have the most branch count moderation potential among the peer group, the analyst added.