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Compass Point Starts Charles Schwab Corp. (SCHW) at Neutral

November 16, 2012 6:47 AM EST Send to a Friend
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Price: $28.51 +0.56%

Rating Summary:
    6 Buy, 18 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 4 | New: 7
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Compass Point initiates coverage on Charles Schwab Corp. (NYSE: SCHW) with a Neutral. PT $13.50.

The firm comments, "We expect ongoing macro uncertainty to continue to weigh on interest rates, which in turn, should keep Schwab earnings (and shares) relatively muted over the next 12 months given the company’s heavy reliance on net interest income. In addition, although management has done a good job of keeping expenses in check, and capital flexibility appears to be growing, we expect continued equity market volatility to leave organic growth and trading activity subdued. We could become more constructive on the stock if we had greater conviction that interest rates were sustainable at higher levels, meaningful share repurchase activity was approaching, or at a cheaper valuation. But in the meantime, we see limited near-term catalysts and look for shares to remain range-bound."

For an analyst ratings summary and ratings history on Charles Schwab Corp. click here. For more ratings news on Charles Schwab Corp. click here.

Shares of Charles Schwab Corp. closed at $12.50 yesterday.




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