SunTrust Robinson Humphrey Reiterates Buy as TD Ameritrade (AMTD) Announces Scottrade Acquisition

October 25, 2016 8:27 AM EDT
Get Alerts AMTD Hot Sheet
Price: $41.48 -0.96%

Rating Summary:
    8 Buy, 16 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
Trade AMTD Now!
Join SI Premium – FREE

Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.

SunTrust Robinson Humphrey reiterated a Buy rating on TD Ameritrade (NASDAQ: AMTD), and raised the price target to $42.00 (from $38.00), following the company's 4Q earnings report and announced acquisition of Scottrade. The total consideration ($4 billion) and basic structure of the transaction were consistent with earlier reports. The deal strengthens AMTD's core online trading business, which has become increasingly competitive and scale-dependent.

Analyst Douglas Mewhirter commented, "We maintain our Buy rating on AMTD shares following an inline F4Q report and AMTD's announcement reaching an agreement to buy Scottrade (Private). We believe that the transaction should shore up TD Ameritrade's most vulnerable segment - online trading - and should give it more runway to diversify into feebased products and grow its RIA custody segment. Meanwhile, AMTD should be able to continue its generous capital return policy. We have lowered our F17E EPS to $1.64 from $1.73, and introduced a F18E EPS of $1.75. Our $42 price target (up from $38) reflects the added value from the merger."

For an analyst ratings summary and ratings history on TD Ameritrade click here. For more ratings news on TD Ameritrade click here.

Shares of TD Ameritrade closed at $35.46 yesterday.



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

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change, Mergers and Acquisitions

Related Entities

SunTrust Robinson Humphrey, Earnings, Definitive Agreement

Add Your Comment