William Blair analyst Jeff Schmitt has maintained their bullish stance on SCHW stock, giving a Buy rating on July 29.
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Jeff Schmitt has given his Buy rating due to a combination of factors indicating positive momentum for Charles Schwab. The company’s underlying fundamentals are showing signs of improvement, with organic growth on the rise and a beneficial shift in sweep cash. Additionally, the current market conditions are favorable, leading to increased trading activity and higher margin balances, which are crucial for enhancing spread income.
These positive trends are expected to allow Charles Schwab to reduce its reliance on supplemental funding, thereby boosting the net yield and providing a strong impetus for earnings growth. The potential for increased capital return further strengthens the outlook, supporting the expectation of an over 40% growth in earnings per share. These factors collectively underpin Jeff Schmitt’s confidence in recommending a Buy rating for the stock.
In another report released on July 29, Morgan Stanley also maintained a Buy rating on the stock with a $131.00 price target.