E*TRADE Financial (ETFC) Could Trade Down 'Meaningfully' on Schwab/TD Ameritrade Merger - KBW
KBW analyst Kyle Voigt thinks E*TRADE Financial (NASDAQ: ETFC) could trade down meaningfully amid news rivals TD Ameritrade (NASDAQ: AMTD) and Charles Schwab (NYSE: SCHW) are near a deal to merge.
Voigt notes AMTD and SCHW were the two most likely acquirers for that business, and believes ETFC was the most crowded long in the space, mostly on a takeout potential.
He feels the deal for SCHW and AMTD makes strong strategic sense and provides room for revenue and cost synergies, but a key focus for investors will be the potential for anti-trust hurdles in a transaction