Charles Schwab Corp. (SCHW) PT Raised to $60 at Citi Following Tax Reform

Citi raised its price target on Charles Schwab Corp. (NYSE: SCHW) to $60.00 (from $52.00) while maintaining a Buy rating. 2018 and 2019 EPS estimates have been raised to $2.41 and $2.98 vs. $1.88 and $2.23 prior. The combination of lower taxes plus faster sweep migration pace the bulk of the upward revisions. 2017 estimates raised $0.01 to $1.63.

With robust markets in ’17, Tax Reform beginning in ’18 rather than ’19 and what should be the bulk of money markets to spread NII transfers front loaded into ‘18, Citi now believes SCHW may earn ~$3.00 in ’19 – all of which drive further upside in shares.

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