Barclays Maintains an 'Equalweight' on Charles Schwab (SCHW); Mixed Story - Better 2Q Result but Estimates Remain Under Pressure

Barclays maintains an 'Equalweight' on Charles Schwab Corp. (NYSE: SCHW), PT lowered by $1 to $17.

Barclays analyst says, "We believe SCHW shares are fairly valued at current levels (14x 2012 P/E), particularly vs. the closely-linked traditional asset manager sector at just 12x 2012 P/E. We view SCHW shares as significantly levered to rising interest rates, though this "interest rate option" embedded in the share price appears to be fully discounted out due to receding expectations of Fed funds hikes out well into late 2012 or beyond. To the extent this sentiment begins shifting closer, we believe SCHW shares will meaningfully outperform and we would look to be more constructive on the stock."

"Despite the slightly better-than-expected quarter, we are lowering our 2011 EPS estimate from $0.81 to $0.80 and our 2012 EPS estimate from $1.10 to $1.05, driven by small negative changes to management fee spread, money market fee waivers and net interest margin expectations."

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 $14.97 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
• Premier Financial Corp. (PFC) PT Lowered to $23 at Keefe, Bruyette & Woods
• Acrivon Therapeutics Inc (ACRV) PT Lowered to $22 at Jones Trading