Schwab selloff on cash sorting headwinds overdone, says Piper Sandler

Piper Sandler says yesterday’s selloff in shares of Charles Schwab (SCHW) is overdone and "could present an attractive entry point into one of the strongest brands in financial services." While Schwab has faced cash sorting headwinds recent as depositors moved cash to higher yielding assets from lower yielding ones, its remaining retail deposit risk is "far different" from SVB Financial (SIVB) and its lending risk is "far different from most other banks," the analyst tells investors in a research note. The firm believes that if regulation is "reasonable," Charles Schwab is unlikely to fall into the sale and balance sheet restructuring SVB scenario, which could provide an opportunity for investors. It keeps an Overweight rating on the shares with a $100 price target.