Nomura Securities maintains a 'Neutral' on Charles Schwab (SCHW); Takeaways From Mgmt Meeting
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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 maintains a 'Neutral' on Charles Schwab Corp. (NYSE: SCHW) price target of $12.00.
Analyst, Keith Murray, said, "Not surprisingly, management highlighted the difficult earnings backdrop at the outset, given lower interest rates for longer and still weak investor sentiment (closed 2011 below the end of 2010 levels). That said, Schwab management is focused on controlling what it can and growing the company’s long-term earnings power. To that end, management noted that the firm’s underlying earnings power has grown over 40% since mid- 2008. We think Schwab put up solid results in 2011 despite the headwinds (core revenues grew 9% and outpaced the 6% increase in core expenses). Management continues to balance investing for growth and maintaining a high quality client experience while also watching the bottom line. Specifically, project spending will be down over 20% in 2012 (to around $140mm) and core expenses (ex the impact of optionsXpress) are expected to be flat vs. 2011. We think Schwab shares could be range bound in the near term given low interest rates, a pretty full valuation (18x consensus 2012 estimates), and uncertainty around money market reforms."
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 $12.12 yesterday.
Analyst, Keith Murray, said, "Not surprisingly, management highlighted the difficult earnings backdrop at the outset, given lower interest rates for longer and still weak investor sentiment (closed 2011 below the end of 2010 levels). That said, Schwab management is focused on controlling what it can and growing the company’s long-term earnings power. To that end, management noted that the firm’s underlying earnings power has grown over 40% since mid- 2008. We think Schwab put up solid results in 2011 despite the headwinds (core revenues grew 9% and outpaced the 6% increase in core expenses). Management continues to balance investing for growth and maintaining a high quality client experience while also watching the bottom line. Specifically, project spending will be down over 20% in 2012 (to around $140mm) and core expenses (ex the impact of optionsXpress) are expected to be flat vs. 2011. We think Schwab shares could be range bound in the near term given low interest rates, a pretty full valuation (18x consensus 2012 estimates), and uncertainty around money market reforms."
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 $12.12 yesterday.
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