Wells Fargo, Boeing: Ratings Changes

Wells Fargo, Boeing and TD Ameritrade had their ratings changed at TheStreet.
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BOSTON (TheStreet) -- Wells Fargo (WFC) - Get Report, Boeing (BA) - Get Report and TD Ameritrade (AMTD) - Get Report had their ratings changed by TheStreet's stock model.

3.

The model upgraded online brokerage TD Ameritrade to "buy."

Quarter

: Fiscal second-quarter profit increased 23% to $163 million, or 27 cents a share, as revenue grew 21% to $637 million. The company benefited from a 17% increase in average client trades per day and $10 billion of new assets.

Stock

: TD Ameritrade has advanced 26% during the past year, lagging behind U.S. stock-market indices. It trades at a price-to-book ratio of 3.1 and a price-to-sales ratio of 4.8, 24% and 64% premiums to peer averages. It's fairly valued based on earnings.

Japan Looks To Expand Exports (Forbes)

Consensus

: Of analysts covering TD Ameritrade, 11, or 52%, advise purchasing its shares, eight recommend holding and two suggest selling them.

Morgan Stanley

(MS) - Get Report

expects the stock to climb 38% to $28.

KBW

(KBW)

believes it will hit $23.50.

2.

The model downgraded aerospace and defense contractor Boeing to "hold."

Quarter

: First-quarter profit slipped 15% to $519 million, or 70 cents, as revenue decreased 7.8% to $15 billion. The operating margin inched up from 6.3% to 7.6%. Boeing has $10 billion of cash and $13 billion of debt, equaling a debt-to-equity ratio of 4.4.

Stock

: Boeing has more than doubled during the past year, beating stock-market benchmarks. It sells for a price-to-sales ratio of 0.8, a 34% discount to the aerospace and defense peer average. It's expensive based on trailing earnings and book value.

Consensus

: Of researchers following Boeing, 16, or 55%, rate its stock "buy", nine rate it "hold" and four rank it "sell."

Broadpoint

(BPSG)

projects a share price of $100, leaving a potential 33% return.

Credit Suisse

(CS) - Get Report

offers a target of $98.

1.

The model upgraded diversified financial company Wells Fargo to "buy."

Quarter

: First-quarter profit tumbled 16% to $2.5 billion, or 45 cents, as revenue declined 1.8% to $24 billion. The operating margin widened from 31% to 34%. Wells has $70 billion of cash and $246 billion of debt, converting to a debt-to-equity ratio of 2.1.

Stock

: Wells Fargo has soared 84% during the past 12 months, outpacing U.S. indices. It trades at a price-to-projected-earnings ratio of 11, a 38% discount to its peer average. The shares are fairly valued based on trailing earnings, book value and sales.

Consensus

: Of firms rating Wells Fargo, 18, or 58%, advocate purchasing its shares, nine recommend holding and four say to sell them.

Raymond James

(RJF) - Get Report

believes the stock will gain 25% to $42.

JPMorgan

(JPM) - Get Report

predicts that it will hit $39.

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Ratings Upgrades Portfolio

and

Ratings Downgrades Portfolio

-- Reported by Jake Lynch in Boston.