Citi Says Low Rates Hurt Charles Schwab (SCHW) EPS

Citi Investment Research & Analysis analyst Keith F. Walsh maintained his rating of Hold for shares of Charles Schwab Corporation SCHW, with a price target of $18 per share. Walsh said that he still sees Charles Schwab Corporation as the premier asset gatherer and that the company continues to take market share from its peers. However, the analyst also said that continued low rates will depress Charles Schwab Corporation's EPS for the rest of the year. The Citi Investment Research & Analysis analyst wrote, "continued low rates will depress EPS through ’10, and while no longer a headwind, we don’t believe the full benefit will come until later in ’11. Maintain $18 TP. Lowering ’10E to $0.52 driven by YieldPlus settlement; ’11E remains at $1.00, raising ’12E to $1.50. We prefer ETFC."