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E*Trade Gets a Boost

Goldman Sachs upgrades the online firm.
Author:

Online financial firm

E*Trade

(ET) - Get Energy Transfer, L.P. Report

got a boost Monday from

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

.

An analyst with the big Wall Street firm upgraded shares of E*Trade, saying the recent selloff in the wake of

Bank of America's

TheStreet Recommends

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decision to offer free stock trading was overdone. The firm raised its rating on E*Trade to a buy. The rating had been at neutral.

Shares of E*Trade and other online brokers, such as

TD Ameritrade

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and

Charles Schwab

(SCHW) - Get Charles Schwab Corporation Report

, were hit hard in the wake of Bank of America's move.

But many analysts and Wall Street observers say BofA's free trading offer isn't likely to lead to major customer defections at the online firms. That's because BofA's trading system doesn't boast the type of technology favored by active traders -- the most loyal customers of E*Trade and Ameritrade.