Bank of America Securities analyst Craig Siegenthaler reiterated a Sell rating on Charles Schwab yesterday and set a price target of $84.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Craig Siegenthaler has given his Sell rating due to a combination of factors impacting Charles Schwab’s performance. Despite the company reporting better-than-expected earnings per share (EPS) for the second quarter of 2025, its organic growth remains significantly slower compared to its peers. The annualized net new assets (NNAs) have decelerated, partly due to seasonal factors, but this slowdown highlights Schwab’s ongoing struggle to match the growth rates of competitors like Robinhood, Interactive Brokers, and LPL Financial.
Another reason for the Sell rating is Schwab’s lower organic growth trajectory, which is a critical factor for the Underperform rating. While there are some positive developments, such as a reduction in high-cost borrowings and an increase in net interest margin (NIM), these improvements are not enough to offset the concerns about organic growth. The market is aware of Schwab’s efforts to address its liability issues, but the company’s growth continues to lag behind its targets and those of its competitors, reinforcing the Underperform stance.