Charles Schwab stock price target raised to $134 from $129 at TD Cowen

Investing.com - TD Cowen raised its price target on Charles Schwab Corp. (NYSE:SCHW) to $134.00 from $129.00 on Friday, while maintaining a Buy rating on the financial services company. The stock, which has delivered a robust 27.4% return year-to-date, currently shows strong fundamentals with a perfect Piotroski Score of 9 according to InvestingPro data.

The firm cited Charles Schwab’s third-quarter 2025 results, released on October 16, as a "favorable pivot point" for the stock. TD Cowen highlighted management execution, balance sheet flexibility, capital return, and reduced perception risk as key factors supporting its positive outlook. This assessment aligns with InvestingPro’s analysis, which rates Schwab’s overall financial health as "GOOD" with particularly strong scores in profitability and price momentum.

TD Cowen maintained its 22x multiple on revised 2027 estimated earnings per share, resulting in the $5 increase to its 12-month price target. The firm also indicated that running Charles Schwab through its price-to-tangible book value valuation framework yields a pro forma target of $185.

The analyst projects Charles Schwab will achieve return on tangible common equity (ROTCE) of 38% for 2026 estimates and 40% for 2027 estimates, while targeting the high end of a 6.75% to 7% adjusted Tier 1 leverage ratio.

TD Cowen views Charles Schwab as both "defensive and offensive," noting the company has "enough balance sheet levers to offset further rate cuts," and confirmed that the stock remains a top pick for the firm.

In other recent news, Charles Schwab Corp. reported adjusted earnings per share of $1.31, surpassing both Keefe, Bruyette & Woods’ estimate of $1.27 and the consensus forecast of $1.24. This earnings beat was attributed to higher net interest income and a lower tax rate, despite being slightly offset by increased expenses. Following this performance, Keefe, Bruyette & Woods raised its price target for Charles Schwab to $111.00, maintaining an Outperform rating. Goldman Sachs also increased its price target to $114.00, citing strong client engagement and higher client transactional cash as key factors. Raymond James lifted its price target to $110.00, pointing to Schwab’s improved financial position and strategy to reinvest maturing securities at higher yields. Citizens reiterated its Market Outperform rating with a $110.00 price target, highlighting the company’s attractive valuation and potential for strong earnings growth. Additionally, Citizens projected that Charles Schwab would exceed consensus earnings estimates, driven by better-than-expected retail trading engagement. These developments underscore a positive outlook from multiple investment firms for Charles Schwab.

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