S&P Capital IQ Reiterates its BUY Rating on ETrade Financial Target Price Reduced

October 21 00:00 2011

NEW YORK, October 21 (RainbowNewsLine.com) – Analyst Erik Oja of S&P Capital IQ maintains his BUY rating on ETrade Financial Corp (NASDAQ:ETFC), while reducing the estimates for the company. The target price has been reduced from $19 to $15.

Analyst Erik Oja, in a research note published yesterday mentions that the company reported its Q3 EPS ahead of the estimates, driven by  the bounce in daily average revenue trades. The EPS estimate for 2011 is raised from $0.76 to $0.81, reflecting Q3 results and continued rally in consumer interest aiding trade volumes. The 2012 EPS estimate is reduced from $0.93 to $0.88 due to the effect of low interest rate environment on interest income in 2012. In addition, the target price is reduced reflecting forward earnings estimates and decline in peer multiples.