Charles Schwab price target lowered to $78 from $81 at Argus

Argus analyst Stephen Biggar lowered the firm’s price target on Charles Schwab to $78 from $81 but keeps a Buy rating on the shares. The stock rallied about 4% after the company’s Q3 earnings that reflected fading concerns about deposit outflows after deposits showed only a 3% sequential decline, the analyst tells investors in a research note. The firm adds that while its reduced price target is due to modestly lower EPS assumptions as deposit costs continue to weigh on net interest income, it also sees Charles Schwab remaining at the forefront of many important industry trends, including business consolidation, reduced fees, and the increasing focus on lower-cost investment vehicles, including passive index funds.