UPDATE: Sterne Agee Initiates Coverage on TD Ameritrade Holding with Buy Rating, $19 PT

In a report published Friday, Sterne Agee Group initiated coverage on TD Ameritrade Holding Corp. AMTD with a Buy rating and $19.00 price target. Sterne Agee noted, “We view AMTD as an attractive way to play the on-line brokerage sector given leverage to trading volumes which we expect will bounce back long before interest rates, the firm's ‘bank light' business model, significant excess capital, and a reasonable valuation. While we may be early with this call, we believe EPS has troughed and growth in client accounts/assets positions the firm for substantial earnings growth when trading volumes rebound and interest rates begin to normalize.” TD Ameritrade Holding Corp. closed on Thursday at $15.93.