Analysts downgraded Teradyne, Inc. (NYSE: TER), TradeStation Group, Inc. (NASDAQ: TRAD), Urban Outfitters, Inc. (NASDAQ: URBN) and Watson Pharmaceuticals Incorporated (NYSE: WPI) today.
Piper Jaffray downgraded Teradyne, Inc. (TER) from an “overweight” rating to a “neutral” rating. They have a price target of $18 on the company, down from $24.
Macquarie downgraded TradeStation Group, Inc. (TRAD) from an “outperform” rating to a “neutral” rating.
William Blair downgraded Urban Outfitters, Inc. (URBN) from an “outperform” rating to a “market perform” rating.
Wells Fargo & Co. (NYSE: WFC) downgraded Watson Pharmaceuticals Incorporated (WPI) from an “outperform” rating to a “market perform” rating.
Showing posts with label TradeStation. Show all posts
Showing posts with label TradeStation. Show all posts
Thursday, April 28, 2011
Friday, January 14, 2011
Goldman (NYSE:GS) Looks at AMERITRADE (Nasdaq:AMTD), E*TRADE (Nasdaq:ETFC), TradeStation Group (Nasdaq:TRAD), Schwab (Nasdaq:SCHW), Xpress Holdings (Nasdaq:OXPS)
Goldman Sachs (NYSE:GS) gave an update on discount brokers and investment banks today, covering a plethora of companies, including AMERITRADE (Nasdaq:AMTD), E*TRADE (Nasdaq:ETFC), TradeStation Group (Nasdaq:TRAD), Schwab (Nasdaq:SCHW), Xpress Holdings (Nasdaq:OXPS) for discount brokers, and Duff & Phelps (NYSE:DUF), Evercore Partners (NYSE:EVR), Greenhill & Co (NYSE:GHL), Lazard (NYSE:LAZ), Jefferies (NYSE:JEF), Piper Jaffray (NYSE:PJC), Raymond James (NYSE:RJF), Morgan Stanley (NYSE:MS), LPL Investment (Nasdaq:LPLA) and Stifel Nicolaus (NYSE:SF) for investment firms.
Overall Goldman believes there is a healthy outlook for the industry, although noting tailwinds could affect some of them.
Goldman noted, "Despite tailwinds, valuations appear full - The brokerage group looks poised to have a robust 2011, with our 2011 estimates implying 48% yoy EPS growth, led by boutique M&A firms EVR and GHL, as well as by PJC (given exposure to ECM issuance). Improving GDP growth (GS Global ECS Research estimates +3.4% in 2011) and higher equity markets should also lift retail-sensitive names such as SF and LPL, but sector valuations look full at 119% of 5-year average forward P/E.
"4Q10 may be tough, but 2011-12 look better - With the notable exception of LAZ, we lower our 4Q10 estimates for the Smid-cap Brokers due to muted trading activity levels and challenging muni market conditions. That said, we raise our 2011-12 estimates to reflect the favorable environment for M&A and ECM activity in 2011. We also raise our price targets for the group by an average of 11%, which are now based on our 2011 EPS targets or 4Q11 tangible book value estimates for the investment banks (JEF, MS, PJC, RJF, and SF)."
For Discount Brokers:
Goldman raises its price target on AMERITRADE (AMTD) (Buy) from $20 to $23, E*TRADE (ETFC) (Neutral) from $17 to $18, TradeStation Group (TRAD) (Neutral) from $6 to $7 and Schwab (SCHW) (Neutral) from $17 to $19. But, Goldman lowers options Xpress Holdings (OXPS) (Sell) from $16 to $15.
For Investment Firms:
Goldman raises its price target on Duff & Phelps (DUF) (Neutral) from $13 to $16, Evercore Partners (EVR) (Buy) from $35 to $41, Greenhill & Co (GHL) (Neutral) from $72 to $82, Lazard (LAZ) (Neutral) from $42 to $46, Jefferies (JEF) (Sell) from $23 to $24, Piper Jaffray (PJC) (Neutral) from $32 to $40, Raymond James (RJF) (Neutral) from $31 to $36, and Stifel Nicolaus (SF) (Buy) from $65 to $73.
Goldman maintains a Neutral rating on Morgan Stanley (MS) and $30 price target. LPL Investment (LPLA) stays a 'Buy' and $40 price target.
Overall Goldman believes there is a healthy outlook for the industry, although noting tailwinds could affect some of them.
Goldman noted, "Despite tailwinds, valuations appear full - The brokerage group looks poised to have a robust 2011, with our 2011 estimates implying 48% yoy EPS growth, led by boutique M&A firms EVR and GHL, as well as by PJC (given exposure to ECM issuance). Improving GDP growth (GS Global ECS Research estimates +3.4% in 2011) and higher equity markets should also lift retail-sensitive names such as SF and LPL, but sector valuations look full at 119% of 5-year average forward P/E.
"4Q10 may be tough, but 2011-12 look better - With the notable exception of LAZ, we lower our 4Q10 estimates for the Smid-cap Brokers due to muted trading activity levels and challenging muni market conditions. That said, we raise our 2011-12 estimates to reflect the favorable environment for M&A and ECM activity in 2011. We also raise our price targets for the group by an average of 11%, which are now based on our 2011 EPS targets or 4Q11 tangible book value estimates for the investment banks (JEF, MS, PJC, RJF, and SF)."
For Discount Brokers:
Goldman raises its price target on AMERITRADE (AMTD) (Buy) from $20 to $23, E*TRADE (ETFC) (Neutral) from $17 to $18, TradeStation Group (TRAD) (Neutral) from $6 to $7 and Schwab (SCHW) (Neutral) from $17 to $19. But, Goldman lowers options Xpress Holdings (OXPS) (Sell) from $16 to $15.
For Investment Firms:
Goldman raises its price target on Duff & Phelps (DUF) (Neutral) from $13 to $16, Evercore Partners (EVR) (Buy) from $35 to $41, Greenhill & Co (GHL) (Neutral) from $72 to $82, Lazard (LAZ) (Neutral) from $42 to $46, Jefferies (JEF) (Sell) from $23 to $24, Piper Jaffray (PJC) (Neutral) from $32 to $40, Raymond James (RJF) (Neutral) from $31 to $36, and Stifel Nicolaus (SF) (Buy) from $65 to $73.
Goldman maintains a Neutral rating on Morgan Stanley (MS) and $30 price target. LPL Investment (LPLA) stays a 'Buy' and $40 price target.
Wednesday, January 5, 2011
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.
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.
Friday, December 10, 2010
TD Ameritrade (Nasdaq:AMTD), Charles Schwab (Nasdaq:SCHW), TradeStation (Nasdaq:TRAD) Preferred by FBR Capital
Looking into investment services for 2011, FBR Capital said they prefer online brokers such as TD Ameritrade (Nasdaq:AMTD), Charles Schwab (Nasdaq:SCHW) and TradeStation (Nasdaq:TRAD) over asset managers.
FBR also noted that even in the asset management segment there will be an increasing transfer of assets away from bonds to equities.
FBR said, "As we look toward 2011, our outlook for investment services, including asset managers and online brokers, remains challenged. We expect macroeconomic factors, such as unemployment and further consumer de-leveraging, to sustain headwinds that may keep investors from reengaging fully in the equity markets, which could dampen inflows into mutual funds and client trading activity. At the same time, our expectations of continued low interest rates will likely mean more money market fee waivers for asset managers and spread compression for the online brokers. As such, we still favor asset managers that are more weighted toward fixed income, such as Franklin Resources, Inc. (NYSE: BEN)(Outperform), versus equity managers—at least heading into the early part of 2011. Overall, however, we favor online brokers over asset managers. What happens to interest rates will define much of the stock performance for this group in 2011. As macro conditions improve, we believe investors will move first toward online brokers, such as TD Ameritrade Holding Corporation (Outperform), Charles Schwab Corporation (Market Perform), and TradeStation Group, Inc. (Market Perform), in anticipation of the earnings leverage created by rising rates in those models. While asset managers outperformed online brokers during the last rising rate environment, rates are starting at much lower levels today, and as a result, there is more net interest margin (NIM) expansion to unleash this time around. At the same time, investors will likely shift out of fixed-income trades among the asset managers and into those with higher equity exposure, such as Janus Capital Group Inc. (NYSE:JNS)(Market Perform); Waddell & Reed Financial, Inc. (NYSE:WDR)(Market Perform); and T. Rowe Price Group, Inc. (Nasdaq:TROW)(Outperform). Absent such a recovering macro and rate environment, we believe consolidation among the online brokers will begin to occur, providing another reason to favor the group."
TD Ameritrade was trading at $18.50, up $0.01, or 0.03 percent, as of 2:14 PM EST. Charles Schwab was trading at $16.61, $0.20, or 1.19 percent. TradeStation was trading at $6.55, up $0.06, or 0.92 percent.
FBR also noted that even in the asset management segment there will be an increasing transfer of assets away from bonds to equities.
FBR said, "As we look toward 2011, our outlook for investment services, including asset managers and online brokers, remains challenged. We expect macroeconomic factors, such as unemployment and further consumer de-leveraging, to sustain headwinds that may keep investors from reengaging fully in the equity markets, which could dampen inflows into mutual funds and client trading activity. At the same time, our expectations of continued low interest rates will likely mean more money market fee waivers for asset managers and spread compression for the online brokers. As such, we still favor asset managers that are more weighted toward fixed income, such as Franklin Resources, Inc. (NYSE: BEN)(Outperform), versus equity managers—at least heading into the early part of 2011. Overall, however, we favor online brokers over asset managers. What happens to interest rates will define much of the stock performance for this group in 2011. As macro conditions improve, we believe investors will move first toward online brokers, such as TD Ameritrade Holding Corporation (Outperform), Charles Schwab Corporation (Market Perform), and TradeStation Group, Inc. (Market Perform), in anticipation of the earnings leverage created by rising rates in those models. While asset managers outperformed online brokers during the last rising rate environment, rates are starting at much lower levels today, and as a result, there is more net interest margin (NIM) expansion to unleash this time around. At the same time, investors will likely shift out of fixed-income trades among the asset managers and into those with higher equity exposure, such as Janus Capital Group Inc. (NYSE:JNS)(Market Perform); Waddell & Reed Financial, Inc. (NYSE:WDR)(Market Perform); and T. Rowe Price Group, Inc. (Nasdaq:TROW)(Outperform). Absent such a recovering macro and rate environment, we believe consolidation among the online brokers will begin to occur, providing another reason to favor the group."
TD Ameritrade was trading at $18.50, up $0.01, or 0.03 percent, as of 2:14 PM EST. Charles Schwab was trading at $16.61, $0.20, or 1.19 percent. TradeStation was trading at $6.55, up $0.06, or 0.92 percent.
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