The shares are up 1.14% to $30.24 in pre-market trade.
The firm said, "We believe recent fear that noise around high frequency trading could drive changes to the current retail whole-selling/payment-for-order-flow regime are misplaced; our expectations of rate upside in 2016 are not reflected in the current price; and retail sentiment and the operating environment continue to improve."
"We believe AMTD now has no rate upside reflected in the current valuation, which could drive company repurchases," the note added.
TheStreet Ratings team rates TD AMERITRADE HOLDING CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TD AMERITRADE HOLDING CORP (AMTD) a BUY. This is driven by a number of strengths, 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 revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: