Wells Fargo Downgrades Charles Schwab Corp. (SCHW) to Market Perform; Few Catalysts Absent Higher Rates

Wells Fargo downgraded Charles Schwab Corp. (NYSE: SCHW) from Outperform to Market Perform, price target range cut to $11-$13 from $14-15.

Wells analyst says, "We expect retail broker fundamentals to remain weak in 2012 and think SCHW will have difficulty growing EPS in this environment. While we recognize that upside potential to EPS is significant in a higher interest rate environment (roughly 50% upside potential at 1% Fed Funds), we have little visibility on this outcome and see few other near-term catalysts for the stock. We reduce our 2012/2013 EPS estimates to $0.71/$0.81 from $0.74/$0.90."

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 $12.47 yesterday.

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