Nomura Securities Starts TD Ameritrade (AMTD) at Neutral; Assets Are Growing, but Earnings Are Stuck
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Price: $0.76 --0%
Rating Summary:
4 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities initiates coverage on TD Ameritrade (NASDAQ: AMTD) with a Neutral. PT $17.00.
Analyst, Keith Murray, said, "Despite TD Ameritrade growing interest-earning assets 150% since the end of 2008, its spread revenue is up just 6% due to 250bp of NIM compression. We expect further NIM compression through mid-2013, which will limit earnings growth. However, AMTD is highly leveraged to rising rates (a 25bp increase in Fed Funds should add $0.07 to EPS); thus, the stock moves with rate expectations."
"Investors with a two-year-plus horizon may find AMTD shares attractive, as they trade at less than 8x “normalized” earnings (a 200bp increase in Fed Funds should add more than $0.50 to EPS). However, we see better value in E*TRADE (Nasdaq: ETFC) over the next 12 months, as it is trading at 8x our 2013 estimate."
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 $15.25 yesterday.
Analyst, Keith Murray, said, "Despite TD Ameritrade growing interest-earning assets 150% since the end of 2008, its spread revenue is up just 6% due to 250bp of NIM compression. We expect further NIM compression through mid-2013, which will limit earnings growth. However, AMTD is highly leveraged to rising rates (a 25bp increase in Fed Funds should add $0.07 to EPS); thus, the stock moves with rate expectations."
"Investors with a two-year-plus horizon may find AMTD shares attractive, as they trade at less than 8x “normalized” earnings (a 200bp increase in Fed Funds should add more than $0.50 to EPS). However, we see better value in E*TRADE (Nasdaq: ETFC) over the next 12 months, as it is trading at 8x our 2013 estimate."
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 $15.25 yesterday.
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