E TRADE Financial Corp (ETFC)

[Egor]

S&P KEEPS HOLD OPINION ON SHARES OF E TRADE FINANCIAL
(Standard & Poor's)
Q3 loss of $0.61 vs. loss of $0.60 is wider than our $0.11 loss estimate, hurt by charges related to its debt exchange. Lower client activity levels and a lower net interest margin pressured revenues, while credit provisions remain elevated. The loan book continues to reflect market stress and will likely pressure revenues thoughout 2010. We think a restructured balance sheet improves ETFC's financial position. We widen our '09 loss estimate to $1.28 from $0.81, but improve our '10 estimate by $0.03 to a profit of $0.01, and we keep our target price of $2, equal to book value.