Citigroup Lowers PT on Charles Schwab to $12

Citigroup has published a research report on Charles Schwab

and has lowered the price target from $13 to $12 based on the lowered EPS view. In the report, Citigroup writes, "SCHW made a series of announcements in concert with mixed November metrics (DATs down 15% MTM and well below view) including further trading weakness in December and accelerating NIM pressure that is expected to lower 4Q11 EPS by $0.04 to $0.06 versus the $0.18 GAAP EPS reported in 3Q11. 4Q11 NIM expected to be below management's prior 165 bps guidance given further acceleration in prepayment speeds in agency MBS within the firm's investment portfolio. In turn, we believe the prior YE12 NIM guidance of 160 bps may also prove optimistic should trends hold and the 10yr Treasury remain at ~2%." Citigroup maintains its Neutral rating on Charles Schwab, which is currently trading down $0.49 from yesterday's $11.53 closing price.