Wednesday, May 16, 2012

Deutsche Ups Schwab, TROW to “Buy”

Following up on this morning’s note that Deutsche Bank raised Charles Schwab (SCHW) to “Buy” from “Hold.” Analyst Michael Carrier today raised the stock’s target to $25 from $18, writing that there’s 60% to 80% upside over the next two to three years as the company benefits from fund flows, rates and margins. The upgrade is part of a triple header, with Carrier raising T. Rowe Price (TROW) to “Buy” from Hold” with a $57 price target, based on improving 401K flows, and a “gradual” shift into equities; and lowering Franklin Resources (BEN) to “Hold” from “Buy,” while lowering his price target to $115 from $125. Carrier suggests industry trends that have favored Franklin since June will now give more of a lift to T. Rowe.

Schwab shares are up 67 cents, or 3.8%, to $18.01, T.Rowe is up $1.96, or 3.9%, at $51.99, and Franklin Resources rose $1.05, or 1%, to $105.33.

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