William Blair analyst Jeff Schmitt has maintained their bullish stance on SCHW stock, giving a Buy rating on March 5.
Jeff Schmitt’s rating is based on a combination of factors that highlight Charles Schwab’s strong performance and potential for growth. The company’s February 2025 Monthly Activity Report indicates an improvement in organic growth, which is expected to return to historical levels this year. Additionally, there are signs of increased client cash levels and accelerated margin balances, suggesting a robust engagement from investors.
These positive trends are further supported by elevated trading activity, driven by strong investor participation in volatile markets. Although the tax season might pose a temporary challenge in the coming months, it is anticipated that Schwab will continue to reduce its short-term funding. This financial strategy is likely to result in a significant increase in earnings per share (EPS), reinforcing the Buy rating given by Jeff Schmitt.