Barclays upgrades Charles Schwab as the Fed continues its trend to normalization

On Thursday Barclays issued a report on Charles Schwab Corporation SCHW upgrading the brokerage service firm from Underweight to Overweight. Currently Charles Schwab has a $34 price target. Kenneth Hill an analyst at Barclays 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 their 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.