J.P. Morgan analyst Ken Worthington has maintained their bullish stance on SCHW stock, giving a Buy rating on February 21.
Ken Worthington has given his Buy rating due to a combination of factors that highlight Charles Schwab’s strategic initiatives and growth potential. Worthington appreciates Schwab’s focus on revenue diversification and its commitment to driving net new asset growth (NNA) and return on client assets (ROCA). Schwab’s management has shown a thoughtful approach to balance sheet management and capital allocation, which positions the company well for future growth and improved margins.
Schwab’s initiatives to enhance client engagement and promote its advice products and services are expected to lead to better ROCA trends. The company’s launch of an alternative investment platform and its focus on expanding its offerings to both retail and advisor clients further underscore its growth strategy. Additionally, Schwab’s competitive pricing and comprehensive product lineup, coupled with its strong customer service, provide good value to its clients. These factors, along with improved balance sheet positioning and capital return strategies, contribute to Worthington’s positive outlook on Schwab’s stock.
In another report released on February 21, TD Cowen also upgraded the stock to a Buy with a $103.00 price target.
Based on the recent corporate insider activity of 123 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SCHW in relation to earlier this year.
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