Is TD Ameritrade Worth $24 Per Share? (AMTD)

TD Ameritrade Holding Corporation (NASDAQ: AMTD) is suffering with the online brokers due to a lack of interest rates allowing any interest on their customers’ cash deposits.  So, when you see anything close to a 50% higher value than today you have to pay attention even if it is more implied than set in stone.  Gabelli has a very positive cal out on TD Ameritrade today:

“We attended the firm’s annual registered investment advisor conference and met with management. RIA assets total approximately $150 billion of Ameritrade’s $406 billion in aggregate client assets.  Growth in this channel has been almost twice the firm’s traditional retail business in the last few years. On the regulatory front, there is not much concern about a potential domestic transaction tax despite efforts by certain countries in the European Union.  Lack of US political backing and UK aversions were sighted reasons.  Fiduciary standards regulation changes have been pushed out a year to due to the agencies requests for more research and industry input.”

Gabelli noted that shares are trading at 15.2-times 2012 EPS estimates and 8.3-times 2012 projected EBITDA of $1.2 billion. 

Gabelli sees a 2012 ‘private market value’ of $24.00.  With a close of $17.47, Gabelli’s target implies 43% upside.  For whatever it is worth, the Thomson Reuters analyst data shows a one-year consensus target of only $18.64 and the 52-week range is $13.43 to $22.90.