Charles Schwab price target lowered to $60 from $74 at BofA

BofA analyst Craig Siegenthaler lowered the firm’s price target on Charles Schwab (SCHW) to $60 from $74 and keeps an Underperform rating on the shares. The significant rise in short-term interest rates over the last 12 months is creating major issues in financial services, which is putting capital intensive financial institutions with long-term assets in difficult situations and drove the collapses at both Silicon Valley Bank (SIVB) and Silvergate (SI) last week, the firm tells investors. The firm continues to believe a similar dynamic will also drive downside to market expectations for Schwab’s net interest revenues through 2025 and BofA is reducing its earnings estimates due to this forecast for lower net interest revenues.