Nomura Securities Maintains a 'Neutral' on TD Ameritrade (AMTD); F1Q12: Expenses and Low Tax Rate Drove Beat

Nomura Securities maintains a 'Neutral' on TD Ameritrade (NASDAQ: AMTD) price target of $17.00.

Nomura analyst, Keith Murray, said, "The headline beat was driven by solid expense control (operating expenses -5% ex advertising) and a lower-than-expected 31% tax rate (+$0.02 vs. our estimate). Revenues were soft (-7% q/q) given continued rate pressures (NIM -49bp q/q) and soft trading activity (DARTs -12% q/q). All in, we think the TD Ameritrade story remains pretty much the same, with pressure from low rates and sluggish trading activity largely offsetting the benefit of strong organic growth. As a result, earnings are likely to stay stuck in the near term and we think the stock could slip a bit on the soft revenue trends."

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 $16.30 yesterday.

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