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Barclays Upgrades Charles Schwab As The Fed Continues Its Trend To Normalization

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Barclays on Thursday issued a report on Charles Schwab Corp (NYSE: SCHW), upgrading the brokerage service firm from Underweight to Overweight and raising the price target form $25 to $34.

Analyst Kenneth Hill wrote, "Overall, we see robust EPS growth from 2016 onward (averaging in the mid-20 percent range over the next three years)...Schwab remains the most levered name in our space to short-term rates, with an estimated $1.6 billion in incremental revenue expected after the first 100bps increase in the fed funds rate."

As rates continue to rise, Barclays believes that the firm can increase its revenues by bringing in additional assets to the balance sheet. Overall, Charles Schwab is best positioned to leverage its size to further enhance its position as an industry leader. As the federal government continues to move toward normalization, Charles Schwab should be in a great position for growth.

Charles Schwab closed Wednesday at $29.21.

Latest Ratings for SCHW

DateFirmActionFromTo
Apr 2021Credit SuisseUpgradesNeutralOutperform
Apr 2021Morgan StanleyMaintainsOverweight
Apr 2021CitigroupMaintainsBuy

View More Analyst Ratings for SCHW
View the Latest Analyst Ratings

 

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Posted-In: Barclays Kenneth HillAnalyst Color Upgrades Price Target Analyst Ratings

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