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Citi cuts Charles Schwab target, opens ‘downside catalyst watch’
The Fly

Citi cuts Charles Schwab target, opens ‘downside catalyst watch’

Citi lowered the firm’s price target on Charles Schwab (SCHW) to $80 from $85 and keeps a Neutral rating on the shares. The firm also opened a “90-day downside catalyst watch” on the shares. TD Bank (TD) is reportedly considering a sale of its 10.1% stake in Schwab as part of a strategic review by the incoming CEO Raymond Chun, the analyst tells investors in a research note. The firm sees the potential sale of some of the 185M shares currently owned by TD as a potential “material negative catalyst” for Schwab in the coming months. As cash concerns fade, slower net new asset growth and implications around potential competitive pressures could also limit upside potential, contends Citi.

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