JPMorgan Rating/Price Target: Overweight/$40 JPMorgan Pick: Growth JPMorgan Said: We see Schwab as particularly well positioned for earnings growth in a rising interest rate environment given its money market fund franchise and a rapidly growing bank. Schwab's core business generated EPS of ~$1 in 2015, meaningfully under-earning its potential. The near-term catalyst is rising short term rates driving a recovery of money market fund fee waivers. Longer term, Schwab benefits from a recovery in NIM. Our analysis suggests higher rates could add ~$0.35 to EPS when Fed Funds hits 75bps and if/when NIM recovers from its current 160bps to 350bps, Schwab could generate an incremental $1.40 of EPS. Furthermore, we see bulk transfers of money market funds to bank deposits as another driver of growth. Together, we believe Schwab can earn ~$3 per share implying a $51 value as rates normalize.