Nomura Securities Maintains a 'Neutral' on Charles Schwab (SCHW); 4Q Review
Tweet
Share
E-mailGet Alerts SCHW Hot Sheet
Price: $73.55 +0.85%
Rating Summary:
17 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
17 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Join SI Premium – FREE
Nomura Securities maintains a 'Neutral' on Charles Schwab Corp. (NYSE: SCHW) price target of $12.00.
Analyst, Keith Murray, said, "SCHW reported EPS of $0.13 vs. our/consensus ests of $0.14/$0.13. We think asset management-related fees held up reasonably well (-2% q/q) and trading trends were decent (revenue trades -5% q/q, revenue per-trade +1%). Net new money was a solid $21.5bn for the quarter, with $14.5bn in core flows (management noted that December was particularly strong with positive $10.2bn). Schwab continued to gather assets despite the choppy market. However, low rates/flattened yield curve continue to impede earnings. Given our expectations for the current rate backdrop to remain pretty much unchanged for 2012 we expect margin pressure and money market fee waivers to persist, keeping earnings flattish vs. 2011. Schwab remains an attractive long-term rates play (+100bp in Fed Funds adds over $0.40 to EPS), in our view, but its shares could be range bound in the near term. We see better value in E*TRADE (Nasdaq: ETFC) over the next 12 months."
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 $12.02 yesterday.
Analyst, Keith Murray, said, "SCHW reported EPS of $0.13 vs. our/consensus ests of $0.14/$0.13. We think asset management-related fees held up reasonably well (-2% q/q) and trading trends were decent (revenue trades -5% q/q, revenue per-trade +1%). Net new money was a solid $21.5bn for the quarter, with $14.5bn in core flows (management noted that December was particularly strong with positive $10.2bn). Schwab continued to gather assets despite the choppy market. However, low rates/flattened yield curve continue to impede earnings. Given our expectations for the current rate backdrop to remain pretty much unchanged for 2012 we expect margin pressure and money market fee waivers to persist, keeping earnings flattish vs. 2011. Schwab remains an attractive long-term rates play (+100bp in Fed Funds adds over $0.40 to EPS), in our view, but its shares could be range bound in the near term. We see better value in E*TRADE (Nasdaq: ETFC) over the next 12 months."
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 $12.02 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Super Micro Computer (SMCI) Falls 6%
- American International Group (AIG) PT Raised to $89 at Piper Sandler
- Marsh & McLennan (MMC) PT Raised to $195 at Keefe, Bruyette & Woods
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Nomura, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
