Wednesday, December 15, 2010

FBR Maintains "Market Perform" on Charles Schwab (NYSE:SCHW)

With little in the way of catalysts in the near term, FBR Capital said they're maintaining their "Market Perform" rating on Charles Schwab Corp. (NYSE:SCHW).

FBR said, "We reiterate our rating and price target on Charles Schwab following the release of November client metrics this morning. Trading activity picked up further in November, coming in ahead of our estimates, and net new asset growth, while still sluggish, beat our low expectations. The key positive catalyst for Schwab shares remains higher interest rates, and although we have seen a modest pick-up in short-term rates over the past several weeks, we currently do not expect any meaningful rate hikes to occur in the near term, keeping NIM expansion muted."

Charles Schwab closed at $16.74 on Tuesday, down $0.03, or 0.18 percent. FBR has a price target of $17 on them.

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