Morgan Stanley Analyst Downgrades Charles Schwab Over Cash Sorting Concerns

A Morgan Stanley analyst slashed earnings estimates for

Charles Schwab


because of the impact of clients moving cash to higher yielding options and uncertainty as to when this behavior might stop.

With “limited visibility” on this and other variables, including the regulatory landscape, “we are moving to the sidelines,” analyst Michael J. Cyprys wrote in a March 30 research note. He downgraded the brokerage firm to equal-weight from overweight, and cut his target price for Charles Schwab (ticker: SCHW) to $68 from $99. Shares currently trade around $52, below their 52-week peak of $89.

Source: https://www.barrons.com/articles/charles-schwab-earnings-downgrade-morgan-stanley-analyst-3765d9f7?siteid=yhoof2&yptr=yahoo