Charles Schwab downgraded to Neutral from Buy at Citi

Citi downgraded Charles Schwab to Neutral from Buy with a price target of $70, down from $75. The analyst also opened a “90-day negative catalyst watch” on the shares. Following the recent share strength, the firm sees a more balanced risk/reward at current levels and views Schwab’s valuation as fair. Citi does not expect the company’s cash sweep as a percent of assets to return to historic levels. It also sees potential risk shad of the expected SEC equity market structure rules in early 2024 and the Thinkorswim client conversion in the first half of 2024.