Charles Schwab downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded Charles Schwab to Neutral from Buy with a price target of $71, up from $70. The stock is approaching the 12-month price target while the recent changes in rate expectations creates a renewed downside risk to earnings estimates, the analyst tells investors in a research note. The firm says the recent move lower in forward rates coupled with slower than expected normalization in Schwab’s funding stack reintroduces risks to net interest income and earnings relative to consensus.