
Charles Schwab (SCHW) Stock Forecast & Price Target
Charles Schwab (SCHW) Analyst Ratings
Bulls say
Charles Schwab's financial performance has demonstrated significant engagement among retail trading customers, with daily average trades (DATs) of approximately 7.4 million, marking a 30% year-over-year increase. The firm's pledged asset lending (PAL) saw robust growth, increasing 11% sequentially and 49% year-to-date, contributing to a substantial rise in client assets to $11.9 trillion. Additionally, Schwab's capital ratios improved, with the adjusted Tier 1 leverage ratio up by 60 basis points year-over-year to 7.3%, indicating enhanced financial stability and capacity for future buybacks amid a backdrop of strong revenue growth potential driven by net interest income (NII).
Bears say
The excerpts suggest a negative outlook for Charles Schwab's stock due to factors such as declining net interest income (NII) and a lack of investor consensus on the implications of a lower interest rate curve. Additionally, the firm's new net asset (NNA) flows have been reported to be under 5% in recent months, potentially reflecting integration challenges following the TD Ameritrade acquisition. Furthermore, there are notable downside risks, including macroeconomic dislocations, underwhelming cash level growth, and potential adverse impacts from rising long-term interest rates on accumulated other comprehensive income (AOCI), which may hinder capital return strategies.
This aggregate rating is based on analysts' research of Charles Schwab and is not a guaranteed prediction by Public.com or investment advice.
Charles Schwab (SCHW) Analyst Forecast & Price Prediction
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