TradeStation (NASDAQ:TRAD) PT Raised on Favorable Rate Environment

FBR said they see signs of retail investors slowly coming back to equity markets, along with a more favorable rate environment, as a positive for TradeStation (NASDAQ:TRAD), although they remain cautious on the large percentage of cash they hold.

FBR said, "We are reiterating our rating but are raising our price target by $1 to $6.50 on TRAD in anticipation of a more favorable rate environment and signs that retail investors are beginning to edge back into the equity markets. Additionally, the company holds more than 20% of its market cap in cash. That said, we continue to be cautious on TRAD shares, as we expect that the company's near-term earnings will likely remain depressed until higher rates roll through the company's portfolio and trading activity builds more momentum."

FBR Capital reiterates a "Market Perform" rating on TradeStation, which closed Tuesday at $6.96, down $0.04, or 0.57 percent. FBR raised their price target on them from $5.50 to $6.50.