Wednesday, December 15, 2010

TD Ameritrade (NASDAQ:AMTD) Client Metrics Ahead of Expectations

Based on stronger than expected client metrics, FBR Capital is raising their EPS estimate for 2011 on TD Ameritrade (NASDAQ:AMTD).

FBR said, "We are reiterating our rating and price target on AMTD following the release of client metrics this morning, which were modestly ahead of expectations, driven by further trading momentum. We continue to believe that the underlying core client asset growth and cash flow generation of Ameritrade's overall business remain strong, giving management the flexibility to redeploy meaningful levels of capital back to shareholders while also keeping powder dry for additional accretive acquisitions...Due to the stronger-than-expected DART growth, we are raising our FY11 EPS estimate to $1.03 from $1.02. We are maintaining our FY12 estimate of $1.21."

FBR Capital maintains an "Outperform" on TD Ameritrade, which closed at $18.62 Tuesday, up $0.01, or 0.05 percent. They have a price target of $20 on them.

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