Michael Cyprys, an analyst from Morgan Stanley, maintained the Buy rating on Charles Schwab (SCHW – Research Report). The associated price target remains the same with $76.00.
Michael Cyprys has given his Buy rating due to a combination of factors that highlight Charles Schwab’s strong financial performance and strategic positioning. The company’s first-quarter results for 2025 exceeded expectations across several key metrics, including topline revenue, earnings per share (EPS), net new asset (NNA) growth, and borrowing repayments. Management’s guidance for 2025 remains optimistic, with EPS tracking towards the upper end of their forecasted range, indicating confidence in the company’s future earnings potential.
Furthermore, Charles Schwab’s business model is well-suited to navigate uncertain market conditions, benefiting from natural hedges. The firm has experienced significant trading volume increases, with April’s daily average trades surpassing first-quarter levels, suggesting potential upside in trading revenue. Additionally, the company has shown resilience in its net interest income growth, despite challenges such as declining cash sweep balances. These factors collectively support Cyprys’s positive outlook on the stock.
In another report released on April 17, Citi also maintained a Buy rating on the stock with a $102.00 price target.
SCHW’s price has also changed slightly for the past six months – from $71.910 to $76.150, which is a 5.90% increase.