Charles Schwab stock retains Market Outperform rating at Citizens

Investing.com - Citizens has reiterated its Market Outperform rating and $110.00 price target on Charles Schwab Corp. (NYSE:SCHW), citing the company’s attractive valuation and strong earnings growth potential. The financial services giant, with a market capitalization of $169.6 billion, has demonstrated robust performance with a 16.3% revenue growth over the last twelve months. According to InvestingPro data, the company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.

The financial services firm noted that while Schwab may be less of a "pound the table" idea following its 26% year-to-date gain, it still trades at approximately 16 times Citizens’ increased 2026 estimated earnings per share, representing good value in the high-quality financial services sector. InvestingPro analysis shows the stock trading at a low P/E ratio relative to near-term earnings growth, with 12 analysts recently revising their earnings estimates upward.

Citizens highlighted Schwab’s track record of "underpromising and overdelivering" and identified several growth levers that could drive outperformance in both near and intermediate terms, including supportive business conditions and strong customer engagement metrics.

The firm expects continued growth acceleration as Schwab drives synergies between the legacy Ameritrade and Schwab platforms, with increased product adoption from both sides and a focus on lending that should drive further earnings accretion.

Citizens also pointed to Schwab’s early-stage development of new products such as alternatives and tokenization, which add "new legs to the stool," with the $110 price target representing approximately 19 times Citizens’ 2026 estimated earnings per share.

In other recent news, Charles Schwab Corp. reported its third-quarter 2025 results, prompting Raymond James to raise its price target for the company to $110.00, maintaining an Outperform rating. The firm highlighted Schwab’s improved financial position due to the reduction of high-cost funding, allowing the company to reinvest in maturing securities at higher yields. Citizens also reiterated its Market Outperform rating and a $110.00 price target, projecting that Schwab will exceed consensus earnings estimates, with a forecast of $1.23 per share compared to the $1.22 consensus. In addition to financial updates, Schwab announced the launch of Schwab Private Issuer Equity Services, a new equity management solution for late-stage private companies preparing for potential public offerings. This initiative aims to extend Schwab’s equity management capabilities to firms that remain private longer. BMO Capital initiated coverage on Schwab with an Outperform rating and a $110.00 price target, citing the company’s balance sheet improvements. Meanwhile, Truist Securities reiterated its Buy rating with a slightly higher price target of $112.00, maintaining a positive outlook ahead of the upcoming earnings season for trust banks and financial services companies.

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