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Investing.com - Citi raised its price target on Charles Schwab Corp. (NYSE:SCHW) to $110.00 from $105.00 while maintaining a Buy rating following the company’s second-quarter earnings results. The stock, which has delivered an impressive 51.61% return over the past year, currently trades near its 52-week high of $93.43. InvestingPro data shows 12 analysts have recently revised their earnings estimates upward for the upcoming period.
Charles Schwab shares rose approximately 2% after reporting quarterly earnings that exceeded analyst expectations, driven by healthy client engagement and continued momentum across its platform. The company maintains a perfect Piotroski Score of 9, according to InvestingPro analysis, indicating strong financial health and operational efficiency.
The broker has shown improvement in net new asset (NNA) growth trends, particularly noting solid performance in June, which Citi identified as a key factor for the company’s future performance.
Citi highlighted Charles Schwab’s efforts to deepen client relationships and drive NNA growth toward its historical 5-7% range over the long term, while also making progress on reducing supplemental funding, which should provide a tailwind to net interest margin.
The investment bank named Charles Schwab as its favorite stock in the brokerage space, citing an improving NNA outlook, net interest income benefits from lower supplemental borrowings, asset accumulation momentum, and healthy capital returns expected in coming quarters.
In other recent news, Charles Schwab Corp (BVMF:SCHW34). reported second-quarter 2025 earnings that exceeded analyst expectations, with net revenues reaching $5.85 billion, surpassing estimates by approximately $81 million. The company posted non-GAAP earnings per share of $1.14, beating both Raymond (NSE:RYMD) James’ forecast of $1.12 and the consensus estimate of $1.10. Net interest income was a key factor, performing $84 million above Street estimates, driven by improved net interest margin and higher average interest-earning asset balances. Piper Sandler noted that adjusted expenses were about $137 million lower than anticipated, contributing to the positive earnings report. Following these results, Charles Schwab raised its fiscal year 2025 guidance for revenue growth and earnings per share. Raymond James raised its price target for the company to $103, maintaining an Outperform rating, while Piper Sandler increased its target to $96 with a Neutral rating. Additionally, Charles Schwab maintained a strong capital position after the Federal Reserve’s 2025 stress test, with a Common Equity Tier 1 ratio of 32%, well above the regulatory minimum. As of May 31, 2025, the company managed $10.35 trillion in client assets across various accounts.
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