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Investing.com - Raymond James raised its price target on Charles Schwab Corp. (NYSE:SCHW) to $110.00 from $104.00 on Thursday, while maintaining an Outperform rating following the company’s third-quarter 2025 results. The new target aligns with broader analyst sentiment, as InvestingPro data shows analyst targets ranging from $86 to $130, with 12 analysts recently revising earnings estimates upward.
The investment firm cited Schwab’s improved financial position, noting that with high-cost funding largely paid down, the company is expected to reinvest maturing securities at higher yields. This strategy should help offset net interest margin pressures resulting from Federal Reserve interest rate cuts. The company’s strong financial health is reflected in its perfect Piotroski Score of 9, as reported by InvestingPro, and impressive revenue growth of 16.3% over the last twelve months.
Raymond James also highlighted robust retail trading activity and strong margin loan utilization as positive factors in its assessment. The firm expressed encouragement about solid trends in net new assets and account growth at the financial services company.
The research note indicated that Schwab is expected to return substantial capital to shareholders in upcoming quarters, adding to the positive outlook for investors.
Raymond James projects significant earnings per share growth for Charles Schwab in 2025 and 2026, suggesting the firm sees additional upside potential beyond the current valuation of the stock.
In other recent news, Charles Schwab is expected to surpass consensus earnings estimates for the upcoming quarter, with Citizens projecting earnings of $1.23 per share compared to the $1.22 consensus. This anticipated outperformance is attributed to increased retail trading engagement and improved market conditions. Additionally, Charles Schwab has launched Schwab Private Issuer Equity Services, a new equity management solution tailored for late-stage private companies preparing for public offerings. This initiative aims to offer these private firms the same sophisticated equity management capabilities available to public companies.
On the analyst front, BMO Capital has initiated coverage on Charles Schwab with an Outperform rating and a price target of $110.00, highlighting the company’s balance sheet recovery. Similarly, Truist Securities has reiterated its Buy rating with a $112.00 price target, maintaining a positive outlook ahead of the third-quarter earnings season. Furthermore, Charles Schwab will host a Fall Business Update for institutional investors on October 16, featuring presentations from its top executives.
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