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On Monday, JMP Securities analyst Devin Ryan maintained a Market Outperform rating for Charles Schwab Corporation (NYSE:SCHW) with a steady price target of $94.00. In his statement, Ryan noted that Charles Schwab’s first-quarter 2025 adjusted earnings per share (EPS) of $1.04 surpassed both JMP’s own estimate and the consensus of $1.01. This performance aligns with broader analyst optimism, as InvestingPro data shows 11 analysts have recently revised their earnings expectations upward for the upcoming period. The company’s revenue exceeded JMP’s model by 1.1%, which translates to an additional $58 million, while expenses were slightly higher by 1.4% or $44 million more than expected.
The analyst pointed out that a lower-than-anticipated tax rate of 22.2%, compared to JMP’s forecast of 23.3%, contributed $0.015 to the earnings beat. Additionally, the positive impact of a reduced share count following Charles Schwab’s $1.5 billion stock repurchase was nearly $0.01 per share.
Ryan highlighted Charles Schwab’s adept handling of the complex macroeconomic environment, with swift changes in key model inputs. The firm’s performance over the past months was seen as a testament to the robustness of its business operations as well as the advantages of having a diversified portfolio and built-in natural hedges.
Despite the challenges presented by the current economic climate, Charles Schwab’s results reflect the company’s ability to perform well. The analyst’s reiteration of the Market Outperform rating and $94 price target suggests confidence in Charles Schwab’s continued growth and financial health.
In other recent news, Charles Schwab Corporation has been the focus of several analyst reviews and strategic developments. Barclays (LON:BARC) reaffirmed its Overweight rating on Charles Schwab with a price target of $84, noting the company’s resilience despite concerns over declining margin loans in the industry. JPMorgan also maintained an Overweight rating, setting a higher price target of $92, citing Schwab’s robust earnings model and potential benefits from increasing customer cash allocations. Meanwhile, Morgan Stanley (NYSE:MS) upgraded the stock from Equal-weight to Overweight, although it adjusted the price target down to $76, highlighting Schwab’s potential for a 20% compound annual growth rate in earnings per share over the next two years.
Raymond (NSE:RYMD) James increased its price target for Charles Schwab to $90, maintaining an Outperform rating, driven by expectations of reduced high-cost funding and improved earnings per share. In strategic developments, Charles Schwab made a minority investment in Wealth.com, an estate planning platform, to enhance its wealth management offerings. This investment aims to provide scalable, user-friendly solutions to Schwab’s retail clients and support its advisor clients. Schwab’s recent launch of Alternative OneSource is also expected to drive growth in Return On Client Assets. These recent developments reflect the company’s ongoing efforts to strengthen its financial services and expand its client offerings.
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