Charles Schwab upgraded to Buy from Neutral at Citi

Citi upgraded Charles Schwab to Buy from Neutral with a price target of $75, down from $83. Following the 23% decline over the last two trading days, the shares offer a "compelling risk/reward at current levels," the analyst tells investors in a research note. The firm sees near-term revenue and earnings headwinds from rising funding costs and continued client cash sorting for Charles Schwab, but believes these are reflected in the current stock price. Citi says that while client cash sorting is a "pressure point," it does not see a material risk to deposits leaving Schwab given the composition of its deposit base and customer protections.