Barclays Maintains an 'Equalweight' on Charles Schwab (SCHW); Rate Headwinds Take another Swipe at EPS

Barclays maintains an 'Equalweight' on Charles Schwab Corp. (NYSE: SCHW) price target cut $1 to $14.00.

Barclays analyst says, "Given the negative guidance and seemingly growing source of P&L headwinds, we believe that SCHW shares have appropriately underperformed peers, flat yesterday vs. AMTD +2% and S&P500 +1%. While we believe the long-term earnings power remains intact once the rate environment improves, due to the significant uncertainty as to the duration of that thesis we do not believe that SCHW shares represent an attractive entry point on a relative basis vs. AMTD (stronger organic growth profile, aggressively returning capital to shareholders today) or the broader market itself, which in the case of a material rally would pull SCHW's core earnings power and multiple higher."

"We are lowering our 4Q11E EPS from $0.16 to $0.15 and our 2012E EPS from $0.86 to $0.79. We are lowering our price target from $15 to $14, based on the same 17x on our new 2012E EPS of $0.79."

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 $12.18 yesterday.

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