On Wednesday, Truist Securities made a bullish move by increasing the price target on Charles Schwab Corporation (NYSE:SCHW) shares to $90 from the previous target of $86, while reaffirming their Buy rating on the stock. The adjustment follows Charles Schwab’s robust fourth-quarter 2024 performance and optimistic projections for 2025, which saw the company’s shares climb 6% on the day, outperforming the S&P 500 financials sector’s 1% gain.
Truist Securities’ analysts are now projecting a 5% increase in Charles Schwab’s estimated earnings per share (EPS) for 2025, setting it at $4.00. This optimism is supported by InvestingPro data showing 16 analysts revising their earnings estimates upward for the upcoming period. The stock has demonstrated strong momentum with a 9.87% return over the past week. This figure slightly surpasses the top end of the company’s guidance range, which was set between $4.10 and $4.20, and corresponds to an adjusted EPS of $4.21. Expectations for 2026 have similarly risen by 5%, resulting in an estimated EPS of $5.00.
The new price target of $90 is based on an 18.0x multiple of the firm’s estimated 2026 earnings per share. The analysts at Truist Securities have cited several factors for their increased estimates, including a higher net interest income (NII), a modest boost from increased trading revenue, and marginally reduced expenses compared to their previous model.
Additionally, the analysts noted that their estimates remain slightly conservative relative to management’s revenue growth outlook of 13-15% and the adjusted expense forecast of 4.5-5.5%. The revised projections also take into account a slightly lower tax rate and a reduced share count, which is expected due to increased stock buybacks fueled by stronger earnings.
Charles Schwab’s recent financial results and future outlook have clearly resonated with Truist Securities, prompting the firm to express confidence in the financial services company’s stock through the updated price target and sustained Buy rating. InvestingPro analysis reveals the company’s strong financial health with an overall score of "GOOD" and an impressive track record of maintaining dividend payments for 36 consecutive years. For deeper insights into SCHW’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, financial services company Charles Schwab has been the focus of several analyst updates and financial developments. Piper Sandler recently adjusted its outlook on Charles Schwab, increasing the price target to $78 while maintaining a Neutral rating. This decision followed the company’s stronger-than-anticipated revenue and lower expenses in its fourth-quarter earnings report. Charles Schwab reported net revenues of $5.33 billion for the fourth quarter, surpassing Piper Sandler’s estimate by $131 million. The company’s core net new assets (NNAs) showed significant growth, with $115 billion recorded in December, marking a compound annual growth rate (CAGR) of 4.6%.
Raymond (NSE:RYMD) James has also expressed confidence in Charles Schwab, raising its price target from $86 to $88 while retaining an Outperform rating. This adjustment comes after the company’s optimistic fourth-quarter results and initial outlook for 2025. Furthermore, Charles Schwab has seen improvements in net new asset and account growth, signaling a more favorable future performance.
Lastly, Truist Securities has initiated coverage on Charles Schwab with a Buy rating and an $85 price target, highlighting the company’s strong revenue growth potential. Barclays (LON:BARC) has upgraded the company’s stock from Equal Weight to Overweight, raising the price target to $95. These recent developments reflect a growing confidence in Schwab’s financial trajectory.
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