William Blair analyst Jeff Schmitt has maintained their bullish stance on SCHW stock, giving a Buy rating on September 10.
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Jeff Schmitt has given his Buy rating due to a combination of factors including the continued growth in sweep cash, which has been increasing at a double-digit rate for the third consecutive month. This growth is coupled with modest improvements in organic growth and heightened trading activity, supported by a favorable market environment.
With the possibility of the Federal Reserve easing its policies, sweep cash is expected to rise further, allowing Charles Schwab to pay down supplemental funding and reinvest in higher-yielding assets. These factors are anticipated to provide a significant boost to earnings through 2026, with adjusted EPS projected to surpass $5.00 next year, reinforcing confidence in the company’s financial outlook.
According to TipRanks, Schmitt is a 4-star analyst with an average return of 9.5% and a 68.42% success rate. Schmitt covers the Financial sector, focusing on stocks such as Charles Schwab, Marketaxess Holdings, and SEI Investments Company.
In another report released on September 10, Barclays also maintained a Buy rating on the stock with a $113.00 price target.