Deutsche Bank Maintains Buy On E*Trade Following 4Q14 Results

In a research report sent to investors today, Deutsche Bank analyst Brian Bedell maintained a Buy rating on E*Trade Financial (NASDAQ:ETFC) and slightly raised his price target to $28 (from $26), following the company’s fourth-quarter results, posting EPS of $0.26, beating consensus and Deutsche Bank estimates.

Bedell noted, “We view core EPS at ~$0.26. The beat to our est. was driven by higher NII ($283mn vs. $261mn est.) from higher securities portfolio yields & $8mn higher securities lending revenue than est. Fee revenue was inline overall, while provisions of $10mn beat our $15mn est. Slightly higher op exp of $294mn vs. our $287mn est. partially offset rev beat. Client asset orga nic growth of 5.9% was also solid.”

“Importantly, ETFC received approval to dividend $430mn from bank to parent & operate B/D outside the bank, a positive for excess capital generation & deployment.”

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand name. 

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