Goldman Sachs Downgrades E*TRADE (ETFC) to Neutral, NIM Pressures
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Price: $49.26 --0%
Rating Summary:
11 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs downgraded E*TRADE (NASDAQ: ETFC) from Buy to Neutral and lowered their price target from $10 to $9 saying NIM and trading realities pressure earnings.
Management expects the average NIM for 2012 to fall below 250 bps, and that if the current environment persists, that level would fall further in 2013. Goldman is now model NIM contracting to 248 bps in 2012 and 235 bps in 2013. Each each 10 bps decline in NIM equates to roughly $0.09 in EPS, assuming no offset, Goldman notes.
In addition to lowered NIM, trading activity is muted the firm notes. Goldman said at this growth rate they estimate January 2012 would be 20% below January 2011.
The firm cut 2012-2013 EPS to $0.60/0.85 from $0.80/1.15, and introduced 2014 estimate of $1.00.
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 $9.36 yesterday.
Management expects the average NIM for 2012 to fall below 250 bps, and that if the current environment persists, that level would fall further in 2013. Goldman is now model NIM contracting to 248 bps in 2012 and 235 bps in 2013. Each each 10 bps decline in NIM equates to roughly $0.09 in EPS, assuming no offset, Goldman notes.
In addition to lowered NIM, trading activity is muted the firm notes. Goldman said at this growth rate they estimate January 2012 would be 20% below January 2011.
The firm cut 2012-2013 EPS to $0.60/0.85 from $0.80/1.15, and introduced 2014 estimate of $1.00.
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 $9.36 yesterday.
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