Скачать или смотреть Analyst Insight: Morgan Stanley Research Bearish On Shares Of Schwab In The Near-term

7/8/2010- Morgan Stanley analysts lowered their price target for Charles Schwab Corp. (NASDAQ:SCHW) to $18, down from $21, to reflect the banks revised view on interest rates and the impact of the 12% market decline on client assets.

Analysts Celeste Brown and Thomas Allen said, ""As rates and client assets are key drivers of revenue, we've lowered our '11E EPS by 19%. We still find valuation attractive: the stock is currently trading at 16x revised '11E EPS, a discount to its long-term average (21x), despite an expected 21% five-year EPS CAGR. While we are expecting a rate increase in '11, we believe any rate upside has been washed out of the stock; at these levels, investors are paying only for SCHW's core business (without rate hikes, it is trading in line with historical average forward P/E on our '11E).""

The bank maintained its overweight rating on the stock and sees fiscal 2010 EPS of $0.52, vs. consensus estimates of $0.59 per share, and fiscal 2011 EPS of $0.88, vs. consensus estimates of $1.00.