UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on E-Trade Financial
In a report published Friday, Deutsche Bank reiterated its Hold rating on E-Trade Financial Corporation (NASDAQ: ETFC), but slightly lowered its price target from $9.00 to $8.00.
Deutsche Bank noted, “ETFC reported EPS of $0.14, beating our/St est of $0.11, due primarily to a taxbenefit. Overall, top line trends declined 8% q/q driven primarily by weaker trading revs & lower NII (NIM pressure/flat bal). Expenses also declined ~8% due to seasonally lower comp & adv (as well as a $7M net benefit related to the ARS reserve), while credit improved, with at risk delinquencies falling 6%. A challenging qtr (ex the tax beni) in a tough environment, and given the difficult rate environment (more NIM pressure), weak brokerage trends, some reg/capital uncertainty (shrinking bal sheet), & time until normalized earnings/cap deployment, we remain at Hold.”
E-Trade Financial Corporation closed on Thursday at $7.81.
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