UPDATE: Sterne Agee Initiates E*TRADE Financial at Buy on Operating Leverage, Earnings Growth

Sterne Agee initiated coverage on E*TRADE Financial

with a Buy rating and an $11.00 price target. Sterne Agee said, "The continued run-off of the loan portfolio and bank deleveraging should drive considerable earnings growth in addition to substantial leverage to an improved operating environment. We view the impending transition to capital deployment as a meaningful catalyst that will also highlight the value of ETFC's tax assets, which we currently believe the market is ascribing limited value to." E*TRADE Financial closed at $9.49 on Monday.