NEW YORK (TheStreet) -- E*Trade Financial (ETFC) shares had coverage initiated with a "hold" rating and $24 price target by analysts at Jefferies (JEF) on Monday.
The firm says that despite the company's recent turnaround driven by improving capital ratios and and the ongoing divestment of its legacy mortgage portfolio, the company is "still not out of the woods."
"Sustainable organic growth in an increasingly competitive market will prove challenging in our view. While exposed to higher interest rates, given the legacy funding and asset mix, ETFC is not as well positioned as its peer," said the firm.
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E*Trade shares are up slightly, 0.2% to $21.72, in early trading today.
Separately, TheStreet Ratings team rates E TRADE FINANCIAL CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate E TRADE FINANCIAL CORP (ETFC) a BUY. This is driven by some important positives, 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."