UPDATE: BMO Capital Markets Lowers Target to $8 on E TRADE

BMO Capital Markets maintains its Perform rating on E TRADE (NASDAQ: ETFC) and lowers its price target to $8 from $9 as outlook looks weaker than expected on the company's margins.

BMO Capital Markets says, "E*Trade reported 4Q11 EPS of -$0.02, which compares to our estimate $0.24 and consensus of $0.20. The miss was due mainly to a higher-than-expected loan loss provision of $123 million versus our $48 million estimate, or a delta of $0.15 per share, as a result of additional qualitative reserves."

ETFC closed at $9.36 a share on Wednesday.