Deutsche Bank Downgrades Charles Schwab Corp. (SCHW) to Hold; Swapping Into AMTD
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Price: $110.88 -0.72%
Rating Summary:
22 Buy, 9 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 24
Rating Summary:
22 Buy, 9 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 24
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Deutsche Bank downgraded Charles Schwab Corp. (NYSE: SCHW) from Buy to Hold, price target lowered $1 to $13.
Deutsche analy st says, "While we like the long term potential upside in the online brokers, the sector will likely face ongoing headwinds in 2012 that will limit the upside. In addition to ongoing rate headwinds pressuring NIMs and money market funds, we expect retail activity to moderate post some outsized volume events last year, though we expect organic asset growth to hold steady given ongoing market share gains. We expect management teams to increasingly focus on cost and capital management, where we view AMTD as having the most flexibility. Given this backdrop and current valuations, we are swapping out of SCHW and into TD AMERITRADE (Nasdaq: AMTD) (moving from Hold to Buy), which is our top pick in the sector, given its healthy organic growth, expense flexibility, and capital deployment. While the sector is likely to be range bound in 2012, longer term, the sector has the potential to generate the most upside on normalized earnings within the capital markets."
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 $11.92 yesterday.
Deutsche analy st says, "While we like the long term potential upside in the online brokers, the sector will likely face ongoing headwinds in 2012 that will limit the upside. In addition to ongoing rate headwinds pressuring NIMs and money market funds, we expect retail activity to moderate post some outsized volume events last year, though we expect organic asset growth to hold steady given ongoing market share gains. We expect management teams to increasingly focus on cost and capital management, where we view AMTD as having the most flexibility. Given this backdrop and current valuations, we are swapping out of SCHW and into TD AMERITRADE (Nasdaq: AMTD) (moving from Hold to Buy), which is our top pick in the sector, given its healthy organic growth, expense flexibility, and capital deployment. While the sector is likely to be range bound in 2012, longer term, the sector has the potential to generate the most upside on normalized earnings within the capital markets."
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 $11.92 yesterday.
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