Charles Schwab Corp.’s purchasers are pulling money out of the agency’s low-interest-rate financial institution accounts at twice the speed that Morgan Stanley anticipated, prompting the agency’s analyst to yank his buy-equivalent ranking on Schwab for the primary time since he started protecting the brokerage inventory seven years in the past.

Consumer cash is shifting from so-called sweep accounts into cash market funds at a fee of $20 billion a month, analyst Michael Cyprys wrote in a report Thursday reducing the inventory to equal-weight from obese.

He lowered his goal for the share worth over the following 12 months to $68 from $99. Schwab’s shares, which have fallen 29% this month, slipped 1.3% to $54.51 in premarket buying and selling.

“Whereas purchasers aren’t leaving and SCHW has different sources of liquidity, earnings face extra stress than we had anticipated,” Cyprys wrote, reducing his forecast for revenue this 12 months and subsequent by 30%.

The downgrade displays the heightened threat that analysts see in monetary corporations like Schwab, which is combating a number of the similar forces that hammered the now-collapsed Silicon Valley Financial institution.

Schwab invested in long-term bonds at a interval of record-low rates of interest and is now sitting on losses on these investments after the Federal Reserve jacked up charges.

Depositors, in the meantime, are pulling cash from financial institution accounts searching for increased yields, depriving corporations like Schwab of low-cost funding and elevating concern that it must promote bonds at a loss to cowl outflows.