Wells Fargo Initiates Coverage on TD Ameritrade Holding Corp. at Market Perform (AMTD)

Wells Fargo is out with its report today on TD Ameritrade Holding Corp. AMTD, initiating coverage at Market Perform.

In a note to clients, Wells Fargo writes, "We are initiating coverage of AMTD with a Market Perform rating and a 12-month valuation range of $23-24. We are positive on AMTD's near-term fundamental outlook including the prospect for stronger trading results, higher spread-based revenue and continued robust net new asset growth. However, recent appreciation in the shares gives us pause and we think the current valuation appropriately discounts AMTD's momentum. We are introducing FY2011 and FY2012 EPS estimates of $1.12 and $1.50, respectively. Our valuation range of $23-24 is based off a 15.5-16x multiple on our FY2012 EPS estimate of $1.50."

At the time of posting, shares of AMTD were trading at $22.42, down 0.09% from Thursday's close.