Barclays Maintains an 'Equalweight' on Charles Schwab (SCHW); Earnings Appear to Be Nearing the Environmentally-Driven Trough

Barclays maintains an 'Equalweight' on Charles Schwab Corp. (NYSE: SCHW) price target of $15.00.

Barclays analyst says, "Trading at 14x 2012 P/E, we believe SCHW shares are fairly valued at current levels, particularly vs. the traditional asset manager sector at 11x 2012 P/E and the S&P500 at 12x 2012 P/E. While SCHW has an attractive earnings growth trajectory, in our view, particularly as the stiff interest rate headwinds fade, we believe that it becomes increasingly challenging to justify a significant premium to the asset manager sector and S&P500 given the highly uncertain duration of the interest rate headwinds."

"...we are lowering our 2011 EPS estimate from $0.76 to $0.74 (4Q11E: $0.17 to $0.16) and our 2012 EPS estimate from $0.90 to $0.86..."

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 $11.94 yesterday.

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