Jefferies analyst Daniel Fannon upgraded E-Trade (ETFC) to Buy from Hold with an unchanged price target of $65. The stock's current valuation is attractive for the core business while the financial and strategic benefits as a takeout candidate remain intact, Fannon tells investors in a research note. In a takeout scenario, Fannon thinks E-Trade could be worth as much as low $70s per share. He views TD Ameritrade (AMTD) and Charles Schwab as the most likely buyers given the expense overlaps. The analyst believes increasing competition across the Discount Brokers industry will continue to favor the firms with greater scale and revenue diversity. His favorite ideas in the group are E-Trade and Charles Schwab.