Not surprised --- Just the usual now, hedge funds and shorters taking the TD share price as low as they can.
TD is one of Canada's largest banks and isn't going anywhere. They're still allowed to hold nearly $400 billion in US assets so it could have been worse. TD has been working with US regulators now for 2 years already so the market has had plenty of time to assess and absorb all this. Oh and the analysts coming out now and pretending they didn't expect the US asset cap are just full of it. The National analyst mentioned this possibility months ago and so you can bet the markets factored that in as well.
The technicals are showing TD is nearing a bottom so accumulating shares at this level (below $80) will likely prove to be a wise move a few months out when the dust settles and TD shares are $90+. Had TD not got themselves into this mess, their shares would be about $130 today, trailing just behind Royal Bank. So is this money laundering really worth a $50 per share haircut to TD share price or is this just getting a bit overdone? Is it any wonder that Royal has lowered their TD price target to $82 from $88? TD is one of their main competitors so it's not in Royal's interest to help / promote their competition.
The TD situation (a few rogue employees and serious lack of oversight) versus Wells Fargo (being knowingly criminally involved) are not the same yet US regulators have chosen to hit TD hard to send a message. TD is not the first financial institution to become the subject of a money laundering scheme and it won't be the last. Criminals will always be looking for ways to launder dirty money and so it seems that the US regulators will have a steady source of income through imposing fines of billion of dollars on the deep pocketed financial instituions each time another new case arises.
My guess is TD will probably hit the National $77 PT in the short term and then bounce back into at least the mid $80s to low $90's by year end. Canadian Banks seem to have a licence to print money and TD will find new ways to do so. The good news is that TD has finally stettled with US regulators and a huge part of the unknowns are now behind it. And as the old saying goes, 'This too shall pass'.
In my opinion only, DYODD.
HB77
Oct 11 (Reuters) - Securities analysts revised their ratings and price targets on
several Canadian companies, including Aritzia, K92 Mining and TD Bank Group on Friday.
* TD Bank Group : Barclays cuts target price to C$80 from C$90 * TD Bank Group : Canaccord Genuity cuts target price to C$91.5 from C$93.5 * TD Bank Group : CIBC cuts target price to C$96 from C$100 * TD Bank Group : Cormark Securities cuts target price to C$91 from C$93 * TD Bank Group : RBC cuts target price to C$82 from C$88