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UPDATE: Goldman Sachs Downgrades Charles Schwab to Neutral on Rate Headwinds

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Goldman Sachs reduced its rating on Charles Schwab (NYSE: SCHW) from Buy to Neutral and lowered its price target from $15 to $14.

Goldman Sachs commented, "We downgrade SCHW to Neutral from Buy after last week's Fed action and the subsequent decline in Agency RMBS yields. With over 70% of SCHW's securities portfolio in Agency RMBS, we now expect NIM headwinds to accelerate into 2013, which could be further exacerbated by increased pre-payments. We see SCHW's NIM declining to low 140's by the end of 2013, offsetting benefits of stronger equity markets."

Charles Schwab closed at $13.94 on Tuesday.

Latest Ratings for SCHW

DateFirmActionFromTo
May 2016Deutsche BankMaintainsBuy
Apr 2016CitigroupMaintainsNeutral
Apr 2016JP MorganMaintainsOverweight

View More Analyst Ratings for SCHW
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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