Citi Downgrades Charles Schwab Corp. (SCHW) to Neutral, Opens 90-Day Negative Catalyst Watch

Citi analyst Chris Allen downgraded Charles Schwab Corp. (NYSE: SCHW) from Buy to Neutral with a price target of $70.00 (from $75.00).

The analyst comments "We are opening a 90-day negative catalyst watch ahead of the 1) expected SEC equity market structure rules in early 2024 and 2) the Thinkorswim client conversion in 1H24. While we do not expect some of the more impactful SEC rules (ie. auctions) to ultimately be implemented in their original form, we do view the release of these rules as a headline risk to the stock given the $90-100M of equity PFOF SCHW has received per quarter in 2023. We also see some risk related to the upcoming Thinkorswim client conversion to the new SCHW platform given expectations for other brokerage platforms to make a strong marketing push to capture some of these active traders."

For an analyst ratings summary and ratings history on Charles Schwab Corp. click here. For more ratings news on Charles Schwab Corp. click here.

Shares of Charles Schwab Corp. closed at $66.75 yesterday.

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