10:54 AM EDT, 05/06/2024 (MT Newswires) -- Toronto-Dominion Bank ( MLWIQXX ) is not likely to recover any time soon from a depressed valuation due to skyrocketing regulatory fines, constrained US growth prospects, prolonged anti-money laundering policy remediation, and calls for management change, Jefferies said in a research note Monday.

"Until proven otherwise, our assumption is that [Toronto-Dominion Bank ( MLWIQXX )] is in the penalty box for the foreseeable future and is likely implicitly prohibited from de novo, let alone inorganic, expansion," Jefferies said.

The investment bank said it initially believed that concerns over the anti-money laundering probe on Toronto-Dominion Bank ( MLWIQXX ) were overstated, but "the worst-case scenario has become more likely with [Toronto-Dominion Bank ( MLWIQXX )] potentially entering a lost decade." Jefferies said.

Jefferies has a hold rating on Toronto-Dominion Bank ( MLWIQXX ) and lowered its price target to $74 Canadian dollars ($54.21) from CA$82.

Price: 55.24, Change: +0.58, Percent Change: +1.06