Charles Schwab stock price target raised to $108 from $102 at KBW

Investing.com - Keefe, Bruyette & Woods raised its price target on Charles Schwab Corp. (NYSE:SCHW) to $108.00 from $102.00 on Monday, while maintaining an Outperform rating on the stock.

The price target increase follows Charles Schwab’s reported adjusted earnings per share of $1.14, which exceeded KBW’s estimate of $1.09 and the consensus expectation of $1.10. According to InvestingPro, 16 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s outlook.

KBW attributed the earnings beat primarily to higher revenues across multiple segments, which contributed approximately $0.06 per share, slightly offset by higher preferred dividends that reduced earnings by about $0.01 per share.

The firm noted that Charles Schwab’s sweep cash in June performed better than expected, increasing 3.5% month-over-month, while June net new assets improved to $42.6 billion, representing a 4.9% annualized growth rate.

KBW raised its forward estimates for Charles Schwab, primarily reflecting stronger cash balances in the quarter and increased trading activity, which supported the decision to increase the 12-month price target.

In other recent news, Charles Schwab reported impressive second-quarter 2025 earnings, with adjusted earnings per share of $1.14, surpassing both JMP’s estimate of $1.12 and the consensus estimate of $1.09. The company achieved record revenues of $5.85 billion, marking a 25% year-over-year growth. Schwab’s strong expense management was highlighted, with total core expenses coming in at $2.9 billion, which was lower than expected. Following these results, Schwab raised its fiscal year 2025 guidance for revenue growth and earnings per share.

In addition, Charles Schwab has expanded its 24-hour trading capabilities to include over 1,100 securities, enhancing flexibility for its clients. This expansion follows a successful pilot program and has seen significant client engagement, particularly among international clients. On the analyst front, JMP, Citi, Raymond (NSE:RYMD) James, and Piper Sandler all raised their price targets for Schwab, citing strong earnings results and future growth prospects. Analysts noted Schwab’s solid net new asset growth and potential net interest margin improvements. These developments underscore Schwab’s robust performance and strategic initiatives in recent times.

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