UPDATE: ISI Group Lowers PT on Charles Schwab Following 2Q13 EPS Report

In a report published Wednesday, ISI Group analyst Brian Bedell reiterated a Buy rating on Charles Schwab (NYSE: SCHW), but lowered the price target from $26.00 to $25.00.

In the report, ISI Group noted, “The miss to our estimate and Consensus was on higher expenses than forecast, at $925mn vs. our $909mn estimate, while revenue was slightly better than expected at $1.337bn vs. our $1.326bn estimate. Overall, the revenue growth story remains intact, even with just modest NIM expansion from yield curve steepening, and mgmt retained its outlook for mid-$0.70s EPS in 2013. The 3% selloff is understood given strong recent performance (up 47% YTD), higher than expected op costs and statement on short-term rates being a much more important earnings driver, though we do not think major NIM expansion on yield curve steepening is factored into expectations.”

Charles Schwab closed on Tuesday at $21.00.

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