Charles Schwab stock is ‘attractive’ after the recent pullback – analyst says

The recent pullback in Charles Schwab Corporation (NYSE: SCHW) is an opportunity to build a position in a quality name at a discount, as per a Deutsche Bank analyst.

Charles Schwab stock is attractive risk/reward

The brokerage firm was hit this week after it sold fresh debt worth more than $2.0 billion.

But Brian Bedell is convinced that concerns around its liquidity and capital levels are overblown. In a research note today, he told clients:

The analyst remains bullish on Charles Schwab stock even though the company saw a decline in its deposits as well as net income in its latest reported quarter. At writing, its shares are down over 30% year-to-date.

Charles Schwab Corporation is a dividend stock

Note that Charles Schwab currently pays a dividend yield of 1.73% that makes for another good reason to own its stock.

Brian Bedell agreed that the bank will grow its client cash levels only modestly next year but is convinced of a pick up in the year after. He also confirmed that attrition levels related to Ameritrade were so far in line with expectations.

The Deutsche Bank analyst sees upside in Charles Schwab stock to $73 – a close to 30% upside from here.