01:15 PM EDT, 05/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We reduce our 12-month target price by $4 to $57, based on a forward P/E of 9.3x our FY 2025 (Oct.) EPS view, using a narrower risk premium at 9.3x, below the peer average P/E of 10.3x. While TD is a large diversified global bank, the shares fell 6% after the bank announced it set up a USD450M provision related to anti-money laundering (AML). The WSJ reported that the Department of Justice may focus on any deficiencies to detect money laundering activities. We think the bank may announce added investments to bolster internal controls; thus, TD's FY 2024 expense guide of mid-single-digit growth could be raised, in our view. We would note that TD has already invested over CAD500 million in a comprehensive overhaul of its U.S. and global AML. Encouragingly, the bank is extremely well capitalized, with a CET1 ratio of 13.9% vs. peers at 13.3%. This excess capital provides a reasonable cushion should TD get charged a large penalty, such as USD1 billion (CET1 would fall to 13.7%).