TD Cowen cuts Charles Schwab to Hold on ‘not enough earnings power’

As previously reported, TD Cowen downgraded Charles Schwab to Hold from Buy with a price target of $71, down from $88. The firm cites ongoing mixed execution, including “yet another set of unfavorable EPS guides,” as well as the surprising introduction of potential balance sheet shrinkage, which it calls both “ill timed” and with no clear path to the mechanics. The firm, which lowered its FY24-FY26 EPS estimates for Schwab, sees “too many moving parts” and “not enough earnings power.”