This Financial Giant Got a Rare Double Downgrade. Is It Still a Buy?
Charles Schwab (NYSE: SCHW) recently took a hit when Bank of America issued a rare double downgrade on the stock, from buy to underperform. The stock dropped as investors weighed its recent earnings and some updated comments about its future.
One factor playing a part in the downgrade is a phenomenon known as "client cash sorting." And a slower pace of interest rate hikes during the year could hurt the broker -- which is more sensitive to changes in interest rates than others in the industry. Following its recent sell-off, is Charles Schwab worth buying?
Bank of America analyst Craig Siegenthaler double-downgraded Charles Schwab and lowered its price target from $92 to $75. He said that client cash sorting contributed to the downgrade.
Source Fool.com
