On Oct 17, major Wall Street analysts update their ratings for $Charles Schwab (SCHW.US)$, with price targets ranging from $74 to $87.
Goldman Sachs analyst Alexander Blostein maintains with a hold rating, and adjusts the target price from $67 to $74.
J.P. Morgan analyst Ken Worthington maintains with a buy rating, and adjusts the target price from $86 to $87.
BofA Securities analyst Craig Siegenthaler maintains with a sell rating.
Citi analyst Christopher Allen maintains with a hold rating, and adjusts the target price from $72 to $75.
Barclays analyst Benjamin Budish maintains with a hold rating, and adjusts the target price from $68 to $74.
Furthermore, according to the comprehensive report, the opinions of $Charles Schwab (SCHW.US)$'s main analysts recently are as follows:
Charles Schwab's core deposit balances showed positive movement in the third quarter, and there is an expectation for these deposits to grow in the future. However, a decrease in cash sweep ratios is also anticipated. The organic growth of the company is still underperforming, remaining below 4% which is short of the 5%-7% target for the sixth consecutive quarter. This underperformance is partly ascribed to the integration of Ameritrade's active trader platform, ThinkorSwim, which is considered to be incompatible with Schwab's operational model.
The trend of slowing cash sorting activities is evident, though it is not anticipated that the change observed in September concerning transactional sweep cash will become a consistent pattern. It is noted that the current high cash levels enabled the company to reduce $9B in short-term funding during the quarter. The year 2025 is seen as a period where the company's earnings may normalize more methodically. Furthermore, the narrative surrounding the company's stock is expected to gradually transition towards the medium-term prospects, including growth in wealth management and the launch of a more comprehensive alternatives platform.
Following the Q3 report, it's noted that the company's earnings exceeded expectations by 3%, attributed to surpassing sales forecasts. Additionally, there was an increase in cash balances and advancements in paying down funding. However, it remains uncertain whether this trend in cash balances will persist.
While there are beliefs that the notably strong increase in transactional sweep cash in September may not persist, the broader perspective, assuming stable forward curves, is focused on a more discernible path to balance sheet normalization and a rising earnings per share cycle.
Charles Schwab's Q3 results were better than anticipated, buoyed by notably robust client cash balances. Nevertheless, there are still apprehensions concerning the company's growth in net new assets, net interest margins, and the potential shift in cash trends. The dip in net interest income was somewhat counterbalanced by an increase in asset management revenue.
Here are the latest investment ratings and price targets for $Charles Schwab (SCHW.US)$ from 10 analysts:
Note:
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