Wells Fargo Starts E*TRADE (ETFC) at Market Perform; Fundamentals Have Improved, But Valuation Seems Fair

Wells Fargo initiates coverage on E*TRADE (NASDAQ: ETFC) with a Market Perform.

Wells analyst says, "While ETFC has made considerable progress toward improving its outlook and core broker business, we believe the current valuation is fair. Recent indications of a more challenging economy could negatively affect ETFC more than its other discount broker peers given its high-risk loan portfolio...established 2011, 2012, and 2013 estimates of $0.70, $1.15, and $1.60. Our 12-month valuation range is $15-16, which is based on a 13-14x multiple on our 2012 EPS estimate of $1.15."

For more ratings news on E*TRADE click here and for the rating history of E*TRADE click here.

Shares of E*TRADE closed at $13.60 yesterday.

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