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E*TRADE (ETFC) PT, Estimates Raised at Nomura Amid Strong Q2

July 22, 2016 9:05 AM EDT
Get Alerts ETFC Hot Sheet
Price: $49.26 --0%

Rating Summary:
    11 Buy, 13 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Nomura Securities analyst Steven Chubak reiterated a Buy rating and raised estimates and his price target on E*TRADE (NASDAQ: ETFC) to $32.00 (from $30.00) following strong Q2 results.

Chubak commented, "ETFC reported 2Q16 EPS of $0.48 vs. our $0.39 estimate and cons. of $0.38. Vs. our forecast, the beat was driven by lower provision, better non-comp and fee income, partially offset by weaker NII. Capital remained the story, with ETFC announcing plans to grow above the $50bn SIFI threshold in 1H17. ETFC continues to surprise positively on credit, suggesting that more favorable provision guidance may be warranted; better fee income and expense trends should also support positive cons. revisions. However, the decision to cross $50bn could create some questions (and furrow some brows), particularly regarding the balance of capital deployment priorities between share buybacks and growing assets in a lower-for-longer rate environment; this could dampen share O/P despite the strong print. FY16E EPS from $1.75 to $1.87; FY17E EPS from $1.64 to $1.82."

For an analyst ratings summary and ratings history on E*TRADE click here. For more ratings news on E*TRADE click here.

Shares of E*TRADE closed at $25.22 yesterday.



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