SCHW’s New Client Assets Less Than Expected So Far This Month
Analysts at FBR Capital Markets reiterate their "market perform" rating on Charles Schwab Corporation (NASDAQ: SCHW), while raising their estimates for the company. The target price for SCHW is set to $16.
According to FBR Capital Markets, SCHW’s client metrics for January reflected 75,000 net new brokerage accounts, $6.0 billion net new client assets and 21% m/m growth in daily average revenue trades. The daily average trading volumes seem to have risen by another 4%-5% so far in February. However, the net new client assets were less than expected “even after adjusting for $1 billion of net outflows related to retirement plan services clients,” the analysts add.
“With costs rising to gather new clients and assets, along with our view that client activity levels may slow and interest rates will remain unchanged for most of 2010, we remain cautious on Charles Schwab Corporation at current valuations.” FBR Capital Markets mentioned.
FBR Capital Markets has raised its EPS estimate for 2010 from $0.65 to $0.66.
