Charles Schwab price target lowered to $72 from $75 at Deutsche Bank

Deutsche Bank analyst Brian Bedell lowered the firm’s price target on Charles Schwab to $72 from $75 and keeps a Buy rating on the shares. The analyst views Schwab’s Q1 results and business update as being mixed overall. Positively, the company expressed "strong confidence" around the earnings hit from higher cost funding as being temporary as the pace of cash sorting is winding down, the analyst tells investors in a research note. This said, the earnings impact from higher cost funding, a more liquid balance sheet, and suspension of share repurchase is "substantial," and is now more likely to drive an earnings decline this year, in contrast to a 20% earnings growth outlook before the March banking crisis, says the firm. However, Deutsche thinks downside risk in the stock is now "much more limited."