FBR Capital Reiterates a 'Market Perform' on Charles Schwab (SCHW); Net Flows Reverse Course
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Price: $72.93 +0.59%
Rating Summary:
17 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
17 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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FBR Capital reiterates a 'Market Perform' on Charles Schwab Corp. (NYSE: SCHW), PT $20.
FBR analyst says, "We admire Schwab's strong franchise, client base, and innovative technology, but we remain on the sidelines as the major catalyst of higher interest rates remains a medium- to longer-term event, in our view, due to the still-uncertain macro environment. Given that the company is the most asset sensitive among its online broker peers, we could become more constructive on the shares if we had greater conviction that rate hikes were more imminent. Until that time, however, meaningful net interest margin expansion will be challenging and persistent fee waivers will likely keep earnings growth muted."
"We are maintaining our 2011 and 2012 GAAP EPS estimates of $0.76 and $1.13, respectively, with stronger trading activity offsetting weaker client asset growth. Note: Our 2011 GAAP estimate includes an estimated $55 million in restructuring charges from the optionsXpress (Nasdaq: OXPS)(Not Rated) transaction."
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 $17.98 yesterday.
FBR analyst says, "We admire Schwab's strong franchise, client base, and innovative technology, but we remain on the sidelines as the major catalyst of higher interest rates remains a medium- to longer-term event, in our view, due to the still-uncertain macro environment. Given that the company is the most asset sensitive among its online broker peers, we could become more constructive on the shares if we had greater conviction that rate hikes were more imminent. Until that time, however, meaningful net interest margin expansion will be challenging and persistent fee waivers will likely keep earnings growth muted."
"We are maintaining our 2011 and 2012 GAAP EPS estimates of $0.76 and $1.13, respectively, with stronger trading activity offsetting weaker client asset growth. Note: Our 2011 GAAP estimate includes an estimated $55 million in restructuring charges from the optionsXpress (Nasdaq: OXPS)(Not Rated) transaction."
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 $17.98 yesterday.
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