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Investing.com - Raymond (NSE:RYMD) James has raised its price target on Charles Schwab Corp. (NYSE:SCHW) to $99.00 from $91.00 while maintaining an Outperform rating. The financial services giant, currently trading at $92.05 with a market cap of $167.6 billion, is set to report second-quarter 2025 earnings on July 18. According to InvestingPro, Schwab boasts a perfect Piotroski Score of 9, indicating strong financial health.
The investment firm expects Schwab Bank’s high-cost funding to be largely paid down by the end of 2025, which should lead to significant net interest margin upside for the financial services company.
Raymond James noted that elevated market volatility is driving strong trading volumes, which helps offset potential net interest margin headwinds from possible Federal Reserve rate cuts in 2025.
The firm also expressed encouragement about improving trends in net new assets and account growth at Charles Schwab.
Raymond James sees a path for significant earnings per share growth in 2025 and 2026, along with potential upside to Schwab’s current valuation.
In other recent news, Charles Schwab Corporation reported a record $35 billion in core net new assets for May 2025, marking a 13% increase from the previous year. The company also reported total client assets of $10.35 trillion, up 12% from May 2024. Charles Schwab’s stress capital buffer will remain at the 2.5% minimum following the Federal Reserve’s 2025 stress test, highlighting the company’s robust capital position. Truist Securities raised its price target for Charles Schwab to $100, maintaining a Buy rating, citing solid fundamentals despite some moderation in performance data. Redburn-Atlantic upgraded Charles Schwab stock from Sell to Neutral, raising the price target to $82, reflecting a positive outlook in the U.S. retail wealth management market. The company also filed a Certificate of Elimination for its Series G Preferred Stock, effectively removing it from its Certificate of Incorporation. Despite these developments, analysts at Redburn-Atlantic expressed caution about the sustainability of cash sorting recovery, with earnings per share estimates slightly below consensus for upcoming years.
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