Q: Hi 5i, for better growth over the next 3-5 years would a switch from to TD to CWB, so as to take advantage of discount, make sense? I'm worried about TD being put in the penalty box for any new US acquisitions.
Thx
Thx
5i Research Answer:
We think TD is already in the penalty box. We think if an investor is shifting from TD, then a large bank would be better. While there is an arbitrage opportunity with CWB, the risk profile is so much different, and without a deal CWB shares could take a much bigger hit than any large bank likely would see. We would suggest RY if making a switch.