FBR Capital Maintains a 'Market Perform' on Charles Schwab (SCHW); Outlook Improves, but Rates Keep Us Away

FBR Capital maintains a 'Market Perform' on Charles Schwab Corp. (NYSE: SCHW), PT increased by $1 to $20.

FBR analyst says, "In our view, the results demonstrate that the operating
environment for Schwab and the overall industry, while still challenging, is heading in the right direction as macro progress continues to unfold and equity markets march higher. That said, for Schwab, the lack of meaningful improvement in shortterm rates will continue to keep earnings growth muted as net interest margin (NIM) pressure and money market fee waivers persist. Although we still do not expect rate hikes in the near term, if we experience more sustainable macro improvement and inflationary concerns begin to mount, we could become more constructive on SCHW shares as the company remains more levered to rising rates versus peers."

For more ratings news on Charles Schwab Corp. click here and for the rating history of Charles Schwab Corp. click here.

Shares of Charles Schwab Corp. closed at $18.22 yesterday.

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