Ticonderoga Upgrades Charles Schwab Corp. (SCHW) to Buy; Raising Estimates - Market Rates Rising and Passive Penetration

Ticonderoga upgraded Charles Schwab Corp. (NYSE: SCHW) from Neutral to Buy. PT $22.

Ticonderoga analyst says, "We continue to feel the bias to rates is higher and market rates are beginning to provide a tailwind regardless of fed fund activity. In addition, we are starting to see some encouraging signs with respect to capital. We do not anticipate buybacks any time soon, but a potential dividend back of capital to the parent indicates improved health at the bank and likely increased investor engagement, as they are not just rushing into cash. In conjunction with Q1 earnings, the recent business update, and market conditions, we are raising our 2011 and 2012 EPS estimates to $0.86 and $1.09, respectively, from $0.80 and $0.99 previously. We believe floor valuation is now in the $17-$18 range (assuming 20x multiple on cyclically low EPS)."

For more ratings news on Charles Schwab Corp. click here and for the rating history of Charles Schwab Corp. click here.

Shares of Charles Schwab Corp. closed at $18.59 yesterday.

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