(RTTNews) - FBR Capital Markets has reiterated its $9.00 price target and Outperform rating on online brokerage firm TradeStation (TRAD: News ) following the release of its quarterly earnings results on Thursday.

"Although near-zero interest rates continue to hinder the company's results, we believe that the core franchise earnings power continues to grow in a difficult environment and that that earnings power will become more apparent as rates begin to rise," FBR Capital Markets said in a research note.

Still, FBR Capital lowered its fourth quarter EPS estimate for TRAD to $0.09 from $0.12 and its 2010 EPS estimate to $0.46 from $0.56.

"We remain positive on the TRAD franchise and continue to see long-term value in the company's product and unique client segment," said FBR Capital.

However, "Near-term the company remains relatively stuck in place, as the interest rate environment continues to pressure earnings on both client and balance sheet cash," FBR Capital noted.
TradeStation Group Inc. said Thursday third-quarter net income dipped to $3.69 million or $0.09 per share from $8.67 million or $0.20 per share in the prior year period. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter.

Net revenues for the quarter declined to $32.35 million from $41.77 million in the comparable period. Nine analysts estimated revenues of $30.99 million for the quarter.

TRAD shares were up slightly at $8.37 approaching noon ET Friday.

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by RTT Staff Writer

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