UPDATE: Citigroup Downgrades Charles Schwab to Sell on Excessive Valuation

Citigroup downgraded Charles Schwab

from Neutral to Sell and lowered the price target from $15.00 to $14.00. Citigroup said, "With the stock up ~18% YTD, SCHW now trades at ~23x our 2013 operating EPS estimate, well above B/D peers at ~16.5x and ~15.5x for Traditionals. We believe investors have rushed into the stock to play the active retail re-engagement and rising rate cycle theses, pushing the stock well beyond fair value. Even under sanguine LT growth assumptions, we still see downside risk in the stock." Charles Schwab closed at $16.89 on Friday.