E TRADE Financial Corp (ETFC)

[suzyHomemaker]

S&P UPGRADE & Raises Target to $2.50

SNPMarketScopeResearchNotes2008-10-27 14:49:42.000ETFCE TRADE FINANCIALR PandyaS&P RAISES RECOMMENDATION ON SHARES OF E TRADE FINANCIAL TO HOLD FROM SELLAfter further review of Q3 results, we upgrade our opinion on ETFC shares. While considerable balance sheet uncertainty remains with regards to ETFC's loan portfolio, we believe the company has an adequate capital cushion to withstand additional provisions. Further, ETFC's retail segment remains strong, in our opinion, with a stable customer base and increasing net new customer asset flows.

Accordingly, we increase our book-value multiple, to 0.5X from 0.4X, and raise our 12-month target price to $2.50 from $2