SCHW - Citi upgrades Schwab RayJay on prospect of widening yield curve

Citigroup's William Katz upgrades Charles Schwab ([[SCHW]] +1.6%) and Raymond James Financial ([[RJF]] +0.7%) to Buy as he sees retail brokers potentially on the verge of a "meaningful breakout."Outlines strong connection between widening yield curves and higher multiples.Sees RJF's credit risk peaking and new ad prospects solid.Schwab, meanwhile, is a "NII trough and bellwether rates play."Along with XLF, RJF and SCHW lag the S&P 500 over the past year:From a Quant rating view, RJF ranks Bullish and SCHW ranks Neutral.

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Citi upgrades Schwab, RayJay on prospect of widening yield curve