"While leverage to rates remains a primary investor focus and driver of near-to-intermediate-term upside, we see the company's longer-term growth as investors increasingly price in higher rates into the valuation," analysts at Deutsche Bank said.
The longer-term growth is increasingly appealing that Charles Schwab is expected to receive nearly 30% total return, according to the analyst note.
Deutsche Bank raised the 2017 earnings to $2.10 per share from $2.05 per share, with 2018 earnings estimate of $2.70 per share from $2.63 per share.
Charles Schwab is a savings and loan holding company that is engaged in securities brokerage, banking, money management, and financial advisory services.
Shares of Charles Schwab are increasing 0.15% to $33.46 in early morning trading.
Separately, TheStreet Ratings team rates SCHWAB (CHARLES) CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCHWAB (CHARLES) CORP (SCHW) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."