Out of the Gate: E-Trade jumps on new customer additions

Shares rose 28 cents, or 7.7 percent, to $3.90 in morning trading.

The online broker said late Thursday that it has reached a record 4.8 million customer accounts.

E-Trade recorded more charge-offs related to its mortgage portfolio and costs as it tries to turn around its operations, leading the company to its second straight quarterly loss.

Goldman Sachs analyst William F. Tanona hiked his price target to $4 from $2.50 10.5 percent above Thursday's $3.62 closing price.

Tanona also said management's tone about its $11.4 billion home equity portfolio was much more upbeat than expected, given the state of the U.S. real estate market.

However, Tanona cautioned that E-Trade must raise capital, and doesn't think about $500 million this year in asset sales will be sufficient, given the outlook for housing prices.