Deutsche Bank analyst Brian Bedell lowered the firm’s price target on Charles Schwab to $83 from $109 and keeps a Buy rating on the shares. The company’s February metrics and CFO commentary in the report, combined with the government’s Bank Term Funding Program announced on Sunday, should finally reduce fears of a liquidity problem for Charles Schwab, the analyst tells investors in a research note. However, the firm sees the earnings impact from the cost of bearing greater liquidity as being significant for 2023. It believes Schwab should resume an earnings growth profile above 20% in both 2024 and 2025.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly
See the top stocks recommended by analysts >>
Read More on SCHW:
- SCHW Stock: Liquidity Risks Are ‘Overblown,’ but Earnings Will Take a Hit, Says Deutsche Bank
- Charles Schwab Rises as Ron Baron Ups Holding of the Stock
- Buy the Dip in Banks? Morgan Stanley Disagrees
- SCHW Bleeding Continues Even after Analyst Upgrade
- Schwab has ample liquidity for cash sorting headwind, says JPMorgan