In a report released today, Ken Shih from DBS maintained a Buy rating on Charles Schwab (SCHW – Research Report), with a price target of $100.00.
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Ken Shih has given his Buy rating due to a combination of factors that highlight Charles Schwab’s strong financial performance and strategic positioning. The company reported a significant increase in earnings per share for the first quarter of 2025, surpassing market expectations, driven by impressive net new assets and robust trading activity. This performance positions Schwab well to achieve its full-year earnings targets, supported by net interest margin expansion and contributions from Ameritrade clients.
Moreover, Schwab’s strategic initiatives, including AI advancements, are expected to bolster its market leadership and support long-term organic growth. The acquisition of TD Ameritrade has enhanced Schwab’s trading capabilities and operational efficiency, contributing to its competitive edge. Despite challenges from clients’ cash sorting activities, Schwab’s strong client asset growth and cost-saving measures are leading to a profit rebound. These factors, along with a resilient revenue model and improved investor sentiment, underpin the Buy rating with a target price of USD 100.
In another report released on May 20, Wells Fargo also maintained a Buy rating on the stock with a $87.00 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.