UPDATE: Credit Suisse Upgrades Charles Schwab On Cash Management Opportunity Ahead

In a report published Tuesday, Credit Suisse analyst Christian Bolu upgraded the rating on Charles Schwab Corp. (NYSE: SCHW) from Neutral to Outperform, and raised the price target from $27.00 to $32.00.

In the report, Credit Suisse noted, “We upgrade shares of Charles Schwab to Outperform from Neutral. We believe the company will embark on a significant client cash optimization strategy that could drive ~$0.25-$0.30 in incremental EPS over the next 2-3 years. Add this to improved retail engagement and accelerating capital return, we view current prices as a still attractive entry point for a strong franchise. We raise our target price to $32 (old: $27) and 2015/16 EPS estimates to $1.18/$1.90 (old: $1.10/$1.60).”

Charles Schwab closed on Monday at $26.58.