Goldman Sachs retrograde Charles Schwab Corp. (SCHW) to neutral and remove it from the condemnation buy list citing a review
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Goldman Sachs analyst Will Nance demoted Charles Schwab Corp. (NYSE: SCHW) from Conviction Buy to Neutral with a price target of $ 76.00.
Analyst comments “We are downgrading SCHW to Neutral to Buy and removing it from the condemnation list of the Americas as the stock has approached our price target, and we no longer see an above-average rise by compared to the rest of our coverage (8% increase compared to 16% on average for our coverage). Since its addition to the Americas Buy list on November 30, 2018 and to the Conviction List on April 5, 2021, SCHW is up 56% and 3% respectively, against the S&P 500 58% and 7%. of SCHW has benefited significantly from 1) strong tailwinds from high retail, 2) significant balance sheet growth from increasing customer cash balances in a lower rate environment, 3) yields from the strong markets, and 4) an improvement in the outlook for interest rates (despite the last few days), leading equities to advance 32% over the current year and 146% from the lows of 2020. Going forward, we see considerable leverage in the model to continue to generate strong net growth in new assets, benefit from both the revenue and energy costs of the Ameritrade merger, and also generate significant growth in turnover g Thanks to continued organic growth as well as organically from the increase in margins inherent in the company’s significant sensitivity to interest rates. However, stocks have continued to climb and are approaching our target price of $ 76; thus, we are now seeing less upside over the next 12 months. “
For a summary of analyst ratings and rating history for Charles Schwab Corp., click here. For more information on Charles Schwab Corp. ratings, click here.
The shares of Charles Schwab Corp. closed at $ 70.07 yesterday.