William Blair analyst Jeff Schmitt has maintained their bullish stance on SCHW stock, giving a Buy rating yesterday.
Jeff Schmitt has given his Buy rating due to a combination of factors including Charles Schwab’s strong financial performance in the first quarter. The company reported a 40% increase in adjusted earnings per share, surpassing both the firm’s and market expectations. This growth was supported by a rise in client sweep cash, which allowed Schwab to significantly reduce its short-term funding needs, thereby improving its net interest margin.
Additionally, Schwab demonstrated robust organic growth with core net new assets increasing by 44% year-over-year, marking the highest quarterly level in two years. The increase in new brokerage account openings and the resumption of share buybacks further underscore the company’s positive momentum. Despite some anticipated challenges such as potential declines in margin balances due to market volatility, the overall outlook remains favorable, justifying the Buy rating.
In another report released yesterday, Barclays also reiterated a Buy rating on the stock with a $84.00 price target.