CS First Boston started coverage of numerous online brokers on Friday, and the two the firm likes the best were among Wall Street’s biggest winners on Friday. Shares of National Discount Brokers (NYSE: NDB) soared more than 23 percent, gaining 6-3/4 to 35-3/4 after receiving a strong buy rating. Shares of TD Waterhouse (Nasdaq: TWE), which also received a strong buy rating, climbed nearly 20 percent, rising 2-1/2 to 15-1/4.
These two stocks were singled out by CS First Boston because they seem to be undervalued compared to their competition. Indeed, both stocks appear to have some upside. The profitable National Discount Brokers is well off its 52-week high of 93, and its market value of just more than $600 million is tiny compared to many of its rivals. As for TD Waterhouse, the stock is still significantly off its June initial public offering price, and it could be poised for a rebound.