SunTrust Robinson Humphrey Upgrades Charles Schwab Corp. (SCHW) to Buy; Leverage to Higher Rates Not Priced In

SunTrust Robinson Humphrey upgraded Charles Schwab Corp. (NYSE: SCHW) from Hold to Buy with a price target of $44.00 (from $33.00), saying leverage to higher rates beyond 2017 not fully priced.

Analyst Douglas Mewhirter commented, "AMTD, SCHW and ETFC have the highest sensitivity to an increase in the middle part of the yield curve (mainly due to large MBS portfolios, either on balance sheet or synthetically via IDA agreement), and, we believe that there is upside to consensus in 2018 estimates. Given the potential for upward estimate revisions, we believe that these three stocks should be able to maintain above-average P/E multiples over this time horizon, which results in attractive shareholder returns. Therefore, we are upgrading SCHW and ETFC to Buy from Hold, and maintaining our Buy rating on AMTD."

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 $38.84 yesterday.

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