UPDATE: Compass Point Downgrades The Charles Schwab Corp. to Sell, Reiterates $15 PT on Valuation

In a report published Friday, Compass Point analyst Michael Tarkan downgraded his rating on The Charles Schwab Corp.

from Neutral to Sell, but reiterated his $15.00 price target. In the report, Tarkan noted, “Our call is primarily driven by valuation, as shares now trade at 20x our 2014 EPS estimate, and although we have seen a recent uptick in interest rates, we expect the company's earnings to remain relatively muted near-term. We also highlight lackluster trading activity, declining revenue per total trade, and a potential pull-back in retail mutual fund flow activity as potential headwinds going forward. Ultimately, while we like the franchise and see more value longer term, we believe the current valuation leaves little room for error on the company and/or macro level, and we think it is still too early to begin pricing in more normalized EPS levels. As a result, we expect the stock is due for a pull-back and would recommend investors take some chips off the table after the recent run.” The Charles Schwab Corp. closed on Thursday at $17.98.