UPDATE: Goldman Sachs Upgrades TD Ameritrade on Rate Headwinds Starting to Fade

In a report published on Tuesday, Goldman Sachs analyst Alexander Blostein upgraded TD Ameritrade (NYSE: AMTD) from Sell to Neutral and raised the price target on the company from $19 to $27.

In the report, Goldman Sachs stated, "Although we still think a majority of rate-related benefits are already reflected in AMTD's valuation (20X NTM P/E vs. 15X historically), we believe AMTD is likely to see an acceleration in EPS growth over the next several years, as rate-sensitive revenues are starting to trough, asset gathering momentum remains robust, and expenses are well controlled."

TD Ameritrade closed on Tuesday at $27.20.