Shares of E*Trade (ETFC - Get Report) moved higher on Monday after receiving an upgrade to buy from neutral from analysts at UBS following recent weakness spurred by Charles Schwab's (SCHW - Get Report) escalation of the online-broker price war.

Shares of E*Trade were up 1.8% at $37.04 in trading on Monday after UBS analyst Brennan Hawken raised his rating on the company, though trimmed his 12-month price target slightly to $41 from $45.

"While earnings power has clearly been diminished by the price cuts, ETFC's customer value proposition has improved relative to peers," Hawken wrote in a note to clients, adding the company has "strong core franchise in high-value business segments," and "offers the most compelling path to value creation."

Shares of online brokers took a hit last week after Charles Schwab announced it was eliminating commissions on all trading, prompting investors to re-evaluate and re-price the retail stock-trading sector. 

Separately, UBS on Monday downgraded TD Ameritrade Holding (AMTD - Get Report) to neutral from buy, and cut its price target to $33 from $40, noting a recovery in the company's multiple "is very unlikely in the near-term given the value destructive nature of the pricing actions."

Shares of TD Ameritrade were up 0.92% at $34/08 in morning trading. They ended the day Friday up 2.59%, or 85 cents a share, at $33.70.