BofA Downgrades TD Ameritrade Amid 'Mixed Q2 Trends, Macro Events'

Shares of TD Ameritrade Holding Corp. AMTD have rebounded Tuesday following a 5 percent decline on Monday. Tuesday's 1 percent move higher came despite a downgrade to Neutral from Bank of America.

The firm's Michael Carrier cited "mixed Q2 trends and macro events [which] weigh on the outlook." Carrier said he is expecting mixed results out of the online brokers, but sees TD Ameritrade as the broker, which should post better-than-expected earnings.

'[G]iven organic growth in the sector (potential robo opportunities), active capital management, and limited exposure to the UK/EU, as valuations continue to discount the risks, we think the risk/return outlook should become more attractive," according to Carrier.

The analyst lowered his price objective on shares of TD Ameritrade from $34 to $29.

As shares of TD Ameritrade were last indicated at $27.09, the new price objective represented potential of about 7 percent.