Citi analyst Christopher Allen maintained a Buy rating on Charles Schwab (SCHW – Research Report) on April 17 and set a price target of $102.00.
Christopher Allen’s rating is based on Charles Schwab’s strong financial performance and positive momentum. The company reported a solid first-quarter earnings beat, with a promising start to the second quarter characterized by robust trading activity, increased cash balances, and a rise in account openings. These factors indicate a healthy retail trend and a positive outlook for net new asset (NNA) growth, which is crucial for the company’s future success.
Additionally, Charles Schwab is actively working to enhance client relationships and drive NNA growth towards its historical range over the long term. The company is also managing supplemental funding effectively, with improving transactional cash trends and securities maturities. Management’s plans for greater capital returns in the coming years, supported by expected earnings growth and capital generation, further reinforce the positive outlook. These factors contribute to Allen’s Buy rating for Charles Schwab’s stock.
In another report released on April 17, Morgan Stanley also maintained a Buy rating on the stock with a $76.00 price target.
SCHW’s price has also changed slightly for the past six months – from $71.910 to $76.150, which is a 5.90% increase.