E*Trade Financial (ETFC) Stock Higher, Jefferies Lowers Earnings Estimates
NEW YORK (TheStreet) -- Shares of E Trade Financial (ETFC) - Get Report are up 1.09% to $22.82 in late afternoon trading even though the company's earnings estimates were lowered this morning for 2016 and 2017, to $1.65 from $1.67 and to $1.79 from $1.84, respectively, at Jefferies.
The firm maintained their "hold" rating on the New York-based online broker but lowered their price target to $25.50 from $27.
The price reduction is meant to reflect "modestly lower reinvestment rates, cont. spending, and the most recent forecasts around trading activity," according to the analyst note.
While Brexist has "all but tabled" an interest rate increase from the FOMC, Jefferies still believes E*Trade can gain two increases by year end 2017.
Charles Schwab (SCHW), which Jefferies gives a "buy" rating, remains the firm's "favorite in the group for asset gathering potential and leverage to the front end of the curve."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate E TRADE FINANCIAL CORP as a Buy with a ratings score of B+. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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