Charles Schwab "outperform," target price raised - update

11/16/07 - Credit Suisse

NEW YORK, November 16 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Charles Schwab Corporation (SCHW), while raising their estimates for the company. The target price has been raised from $26 to $28.

In a research note published this morning, the analysts mention that the company faces significant opportunities to gain share in the asset pool market. Charles Schwab’s high-yield checking account, which was introduced this year, has already generated assets worth $1 billion, the analysts say. The company is expected to achieve low double-digit revenue growth and continued cost control in 2008 and exit the year with pretax margins of more than 40%, Credit Suisse adds. The EPS estimate for 2008 has been raised from $1.17 to $1.20.