TD Bank Group (TSE:TD) (NYSE:TD) announced on Tuesday that its stake in financial service company Charles Schwab (NYSE:SCHW) will fetch it close to $156 million in net income for its Q4. The Toronto-based bank estimates that its adjusted equity in net income from its investment in Schwab will be roughly $234 million for the quarter, excluding about $13 million in acquisition-related charges after-tax, about $35 million in restructuring charges after tax, and about $30 million in amortization of acquired intangibles after-tax.
Earlier on Monday, Charles Schwab had investors in excitement after it posted better-than-expected earnings. However, the net income of $1.13 billion reported for the quarter is far from the $2.0 billion the company reported in Q3 2022. Likewise, its adjusted profit for the quarter also dropped to $1.52 billion, compared to the $2.21 billion it posted a year ago.
What is a Fair Price for TD Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TD stock based on six Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average TD price target of C$94.53 per share implies 15.60% upside potential.
