E-Trade (ETFC) last night announced new five-year financial targets and that it will pursue an independent course given higher internal estimates of intrinsic value versus a potential sale, Citi analyst William Katz tells investors in a research note. While the sector has recently sold off, the absence of a sizeable transaction "further removes a bull case thesis" for shares of both TD Ameritrade (AMTD) and Charles Schwab (SCHW), says Katz. Further, he believes the "inaction" also likely leaves open the group to more online pricing pressures and "keeps alive commodization risks." He does not rate E-Trade, has a Neutral rating on Ameritrade and Sell rating on Schwab.

TD Cowen raised the firm's price target on Charles Schwab to $92 from $87 and keeps a Buy rating on the shares. The firm said earnings seem coiled like a spring to expand/grow measurably given combination of peaking client sorting, improving NNA growth, and ongoing pro forma synergies with Ameritrade.

Barclays raised the firm's price target on Charles Schwab to $75 from $74 and keeps an Equal Weight rating on the shares. The company's Q1 report was in line with the Street, and management struck an upbeat tone on the call, the analyst tells investors in a research note. The firm believes investor sentiment seems to be improving.