Deutsche Bank Downgrades TD Ameritrade to “Hold”; Valuation Call (AMTD)


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Online brokerage operator TD Ameritrade Holding Corp. ( AMTD ) on Friday caught a big downgrade from analysts at Deutsche Bank.

The firm said it cut its rating on AMTD from "Buy" to "Hold" with an $18 price target. That target suggests a 12% downside to the stock's Thursday closing price of $20.47.

A Deutsche Bank analyst commented, "For AMTD, while the long term outlook still remains favorable (healthy NNA, exp/cap flexibility, & upside from rate / NIM / margin normalization), given the recent run in the stock/a fair valuation, upcoming seasonality, & a still challenging backdrop (rates/macro), we see limited upside."

TD Ameritrade shares posted small losses in premarket trading Friday.

The Bottom Line
Shares of TD Ameritrade ( AMTD ) have a .98% dividend yield, based on last night's closing stock price of $20.47. The stock has technical support in the $17-$18 price area. If the shares can firm up, we see overhead resistance around the $22 price level.

TD Ameritrade Holding Corp. ( AMTD ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks

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