Market Overview

Bank Of America Breaks Down The Brokerage Sector

Bank Of America Breaks Down The Brokerage Sector
Related VRTS
33 Stocks Moving In Friday's Mid-Day Session
E*TRADE To BlackRock: Here Are Barclays' New Favorite Financials
Related ETFC
Morgan Stanley, Fidelity, Others Back Low-Cost Exchange To Compete With NYSE, Nasdaq
Data Is Creating A Faster, Smarter And Safer Class Of Retail Investor—And They're Turning To Real Estate

Earnings season is coming fast for capital markets stocks, and Bank of America analyst Michael Carrier has re-positioned several of his stock ratings ahead of what he sees as a decent overall quarter. According to Carrier, trends in the third quarter were mixed and included rising markets and short-term interest rates, but also relatively low volume and a weaker dollar.

“Beyond 3Q, with decent activity, favorable markets, a better rate outlook, progress on de-regulation and potential pro-growth policies (tax reform), we continue to see some attractive opportunities, although risks are higher as we move later in the cycle & given elevated valuations,” Carrier wrote.


Carrier downgraded TD Ameritrade Holding Corp. (NASDAQ: AMTD) from Buy to Neutral based on its extended valuation and the relatively high market expectations.

In addition, Bank of America downgraded Nasdaq Inc (NASDAQ: NDAQ) from Neutral to Underperform due to its lack of capital management flexibility and increasing competitive headwinds.

At the same time, the firm upgraded E*TRADE Financial Corp (NASDAQ: ETFC) from Neutral to Buy. Carrier said E-Trade should continue to benefit from additional deposits, core growth and potential M&A opportunities.

Bank of America also upgraded Virtue Investment Partners Inc (NASDAQ: VRTS) from Underperform to Neutral. Carrier said the company has demonstrated decent investment performance and has the potential to expand its margins further.

In addition to the ratings changes, Carrier also listed Bank of America’s top stock picks ahead of earnings season across the entire capital markets sector:

  • Goldman Sachs Group Inc (NYSE: GS).
  • Charles Schwab Corp (NYSE: SCHW).
  • CME Group Inc (NASDAQ: CME).
  • Affiliated Managers Group, Inc. (NYSE: AMG).
  • The Carlyle Group LP (NASDAQ: CG).
  • Northern Trust Corporation (NASDAQ: NTRS).

Related Link: Bank Earnings Pair Trade: Morgan Stanley Vs. Goldman Sachs

Latest Ratings for VRTS

Nov 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight
Oct 2018BarclaysMaintainsEqual-WeightEqual-Weight
Oct 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for VRTS
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Short Ideas Upgrades Downgrades Previews Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (AMTD + AMG)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Analyst Sees Risk-Reward In Favor Of Global Stocks

Report: AMD Navi GPU Could Arrive By Next Year