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Tuesday, Keefe Bruyette & Woods maintained an Outperform rating on Charles Schwab Corp (BVMF:SCHW34). (NYSE: SCHW) shares and increased the price target to $93 from the previous $90. The adjustment follows Charles Schwab (NYSE:SCHW)’s reported earnings, which surpassed both the firm’s and consensus estimates.
Charles Schwab announced an adjusted earnings per share (EPS) of $1.04, exceeding the Keefe Bruyette & Woods estimate (KBWe) of $1.01 and the consensus estimate also at $1.01. The higher than anticipated results were attributed to an increase in revenues, which contributed an additional $0.03 to the earnings, and a lower tax rate that added $0.01. These positive factors were slightly offset by an increase in adjusted expenses, which reduced earnings by $0.01.
In response to the company’s performance, Keefe Bruyette & Woods analyst Kyle Voigt has revised forward estimates for Charles Schwab. The revisions are primarily due to stronger cash balances witnessed in the quarter and increased trading activity. The firm believes these factors support a higher valuation, prompting the raise in the 12-month price target.
The financial services company’s recent earnings beat and the subsequent price target increase reflect its ability to generate higher revenue and manage its tax rate effectively. At the same time, the firm is keeping an eye on the company’s expense management, which remains a crucial part of maintaining profitability.
Keefe Bruyette & Woods’ updated outlook and price target for Charles Schwab stock indicate their confidence in the company’s continued financial performance and market position. The new price target of $93 represents the firm’s expectation for the stock’s potential over the next twelve months.
In other recent news, Charles Schwab Corporation reported first-quarter earnings that exceeded expectations, prompting several analysts to adjust their outlooks. TD Cowen raised its price target to $95, citing the company’s strong management execution and organic growth dynamics. Meanwhile, Citi maintained a Buy rating with a $102 price target, highlighting Charles Schwab’s promising start to the second quarter, characterized by high trading volumes and increased cash balances. JMP Securities also maintained a Market Outperform rating with a $94 price target, noting that the company’s revenue surpassed expectations by 1.1%, contributing to an earnings beat.
Truist Securities, however, slightly reduced its price target from $85 to $84 due to heightened economic uncertainty but maintained a Buy rating, indicating continued confidence in the stock’s potential. Barclays (LON:BARC) kept an Overweight rating and an $84 target, pointing out that Charles Schwab’s customer base differs significantly from competitors, potentially mitigating concerns about declining margin loans. Analysts across firms have noted Charles Schwab’s adept handling of the macroeconomic environment and its strategic initiatives aimed at growth and capital returns. Despite some variations in price targets, the overall sentiment from analysts remains positive, with Charles Schwab being highlighted as a top pick in the brokerage sector.
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