Charles Schwab price target lowered to $61 from $63 at BofA

BofA lowered the firm’s price target on Charles Schwab to $61 from $63 and keeps an Underperform rating on the shares. Schwab’s core deposit balances inflected positively in Q3 and the firm continues to expect core deposits to grow going forward, but it also expects cash sweep ratios to continue declining. Schwab’s organic growth remains below 4%, missing its 5%-7% target for the sixth straight quarter, notes the analyst, who blames this in part on the assumption of Ameritrade’s active trader business, ThinkorSwim, which the firm argues “does not fit well inside SCHW‘s model.”