Nomura Securities Starts Charles Schwab Corp. (SCHW) at Neutral; Chuck Looks Stuck...Until Rates Rise
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Price: $111.09 +1.23%
Rating Summary:
22 Buy, 9 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
22 Buy, 9 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities initiates coverage on Charles Schwab Corp. (NYSE: SCHW) with a Neutral. PT $12.00.
Nomura analyst, Keith Murray, said, "Charles Schwab is the most interest rate–sensitive online broker, and SCHW shares have an 81% R-squared vs. the 10-year Treasury. With rates not expected to rise until at least mid-2013, EPS should remain muted as NIM gets compressed and money market fee waivers (estimated at $165mn per quarter) stay elevated. We see 2012 EPS coming in below the 2011 level and 4¢ below consensus."
"Still the Best Overall Franchise: Despite the difficult backdrop, Schwab continues to post solid ROEs (13% YTD), and net new money continues to pour in ($55bn across the retail and advisory channels YTD). We expect Schwab to continue to gather assets in the mid-single-digit range (a little below AMERITRADE (Nasdaq: AMTD), but SCHW is operating off an asset base 4x as large) via growth from existing accounts, its leading RIA platform, new low-cost 401(k) offering, and retail advisory products."
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 $10.85 yesterday.
Nomura analyst, Keith Murray, said, "Charles Schwab is the most interest rate–sensitive online broker, and SCHW shares have an 81% R-squared vs. the 10-year Treasury. With rates not expected to rise until at least mid-2013, EPS should remain muted as NIM gets compressed and money market fee waivers (estimated at $165mn per quarter) stay elevated. We see 2012 EPS coming in below the 2011 level and 4¢ below consensus."
"Still the Best Overall Franchise: Despite the difficult backdrop, Schwab continues to post solid ROEs (13% YTD), and net new money continues to pour in ($55bn across the retail and advisory channels YTD). We expect Schwab to continue to gather assets in the mid-single-digit range (a little below AMERITRADE (Nasdaq: AMTD), but SCHW is operating off an asset base 4x as large) via growth from existing accounts, its leading RIA platform, new low-cost 401(k) offering, and retail advisory products."
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 $10.85 yesterday.
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