Nomura Securities Maintains a 'Buy' on E*TRADE (ETFC); Looking For Comfort as CEO Sparks Renewed Speculation

August 16, 2012 9:47 AM EDT Send to a Friend
Get Alerts ETFC Hot Sheet
Price: $22.90 +0.09%

Rating Summary:
    11 Buy, 6 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 23
Trade ETFC Now!
Join SI Premium – FREE
Nomura Securities maintains a 'Buy' on E*TRADE (NASDAQ: ETFC) price target of $10.50.

Analyst, Keith Murray, said, "E*TRADE’s recent CEO change sparked renewed press talk about a potential sale of the company. We continue to think that E*TRADE will eventually be sold, but a potential buyer will need to feel comfortable taking on E*TRADE’s loan book ($11.8bn as of 2Q12). While the loan book has characteristics that raise eyebrows (110% LTV on the 1-4 family loans, 114% CLTV on the home equity loans, mostly 2005-2007 vintages, over 80% originated by a third party), we want to highlight some of the positive trends that E*TRADE’s book is experiencing. Some signs of improvement in housing prices. E*TRADE’s loans are most heavily concentrated in California (47% of 1-4 family loans and 32% of home equity loans), followed by New York (7% of both the 1-4 family and home equity books) and Florida (also 7% of both the 1-4 family and home equity books)."

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 $8.53 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Rumors, Trader Talk

Related Entities

Nomura

Add Your Comment