Compass Point Raises Price Target On E*TRADE Financial As Capital Flexibility Is Finally Here

In a report published Friday, Compass Point analyst Michael Tarkan reiterated a Buy rating on E*TRADE Financial Corp (NASDAQ: ETFC), and raised the price target from $26.00 to $28.00.

In the report, Compass Point noted, “We are reiterating our Buy rating on ETFC shares and are raising our price target to $28, from $26, after the company reported a relatively in-line 4Q14 and announced several significant developments on the capital front that will accelerate capital flexibility at the parent company. While credit expenses are still expected to trend higher, and interest rates remain an overhang industry-wide, we view the company's emerging capital optionality as a meaningful positive. We continue to favor ETFC as the way to play the online brokerage space in the current environment.”

E*TRADE Financial closed on Thursday at $22.72.