- More new coverage from Nomura ...
- Greenhill (GHL) is the only one of numerous new names initiated by Nomura this morning to get a Sell rating (price target is $52). The company has historically traded at a justified premium to its peers, says analyst Steven Chubak, but the current gap is "simply too wide" given the GHL's relative market share loss among the independents. A target P/E multiple of 21x to discounted 2016 estimated EPS supports a PT of $52, or 9% downside.
- Schwab (SCHW -0.1%) is started at Neutral with $23 price target. "We are constructive on the near-term earnings outlook for Schwab given favorable secular trends in Advisory and NIM improvement from yield curve steepening ... However, we believe that Schwab’s improved earnings profile and upside from rising rates are already reflected in the current valuation."
- Earlier: Nomura on the big banks, and on brokerage/boutique IB names here and here.
Greenhill rates a Sell at Nomura; Schwab Neutral
Jan 9 2014, 10:12 ET