Dhirendra Tripathi
Investing.com – Charles Schwab (NYSE:SCHW) dipped 2% in Thursday’s trade after Goldman Sachs (NYSE:GS) downgraded it to neutral, shifting the stock from its ‘conviction buy’ list as the rally in meme stocks fades, leaving little room for upside.
Goldman Sachs analyst Will Nance sees a decline in retail volumes quarter-over-quarter as the meme stock rally goes away.
The brokerage has benefitted immensely from the retail-fueled rally in the markets and balance sheet growth.
The analyst sees considerable leverage in the model to continue to drive strong net new asset growth, benefit from both revenue and expense synergies from the Ameritrade merger, and also drive top line growth through organic as well as inorganic route. But with the stock nearing the target, the upside relative to the rest of his coverage looks limited to Nance.
The analyst maintained his target of $76 for the brokerage, an upside of 11% from the stock’s current level of $68.50.