Charles Schwab selloff brings buying opportunity, says Deutsche Bank

Deutsche Bank says Charles Schwab shares dropped nearly 5% yesterday following its debt offering, which rekindled some investor concerns around the pace of its client cash sorting, liquidity, and capital levels. However, each of these concerns are overblown, creating an even more attractive risk/reward profile post the pullback, the analyst tells investors in a research note. The firm would use the selloff as a buying opportunity and reiterates a Buy rating on Charles Schwab with a $73 price target. Following the debt announcement and a follow-up call with investor relations, Deutsche Bank does not see any significant changes to Schwab’s client cash withdrawal behavior.