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Investors like the Toronto-Dominion Bank deal to buy Chrysler Financial for $6.3-billion (U.S.), marking quite a contrast to the chorus of boos that followed last week's purchase of Marshall & Ilsley Corp. by Bank of Montreal.

Michael Goldberg, an analyst at Desjardins Securities, gives a good outline of why the TD deal looks so attractive: The purchase of Chrysler Financial places TD to become a Top Five bank-owned North American auto lender, it accelerates the growth and diversification of TD's loan portfolio, and it was done without the need for TD to issue more common stock.

"This transaction allows TD to achieve its loan growth objectives in the U.S. with a modest capital investment, and the transaction is accretive in the first full year without common share dilution," Mr. Goldberg said in a note. "Aside from this positive initial reaction, we think that it is a positive long-term development for TD's franchise as well."

He maintained a "top pick" recommendation on the stock, along with a price target of $81 (Canadian).

No change yet among other analysts' price targets and recommendations on TD, as well. Of the five analysts who have published their thoughts on the deal on Tuesday (including Mr. Goldberg), the 12-month target prices range between $68 and $92 - which are unchanged. As well the five recommendations consist of four buys and one sell, which are also unchanged.

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