UPDATE: Compass Point Initiates E*TRADE Financial Corporation at Neutral
Compass Point initiated coverage on E*TRADE Financial Corporation (NASDAQ: ETFC) with a Neutral rating and an $8.50 price target.
Compass Point noted, "The company's capital turnaround now appears to be on track after recent deleveraging has put management in position to act on its high-cost debt. However, meaningful flexibility remains a longer term event, in our view, and although a large degree of deleveraging should be completed at this point, the ultimate target remains somewhat up in the air given its dependence on brokerage customer flow activity. Separately, ongoing rate pressure and retail investor caution should leave near-term earnings relatively muted, but we do look for continued credit improvement as the company's legacy loans continue to wind down."
E*TRADE Financial Corporation closed at $7.86 on Thursday.
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