Wednesday, April 11, 2007

FBR Upgrades TD Ameritrade to Outperform

Down Jones Newswires, 10 April 2007

Friedman Billings Ramsey ups TD Ameritrade to outperform from market perform, citing "compelling risk/reward tradeoff" for patient investors. "Despite the choppy markets and our concerns regarding the company's sluggish account growth, TD Ameritrade is still generating significant amounts of free cash that can be used to reinvest in the business, de-lever the balance sheet, or buy back stock," firm says. Also, at current valuation FBR sees AMTD as "increasingly attractive as a takeout candidate either by TD Bank or another competitor."