
Charles Schwab (SCHW) Stock Forecast & Price Target
Charles Schwab (SCHW) Analyst Ratings
Bulls say
Charles Schwab has demonstrated impressive engagement among retail trading customers, reporting daily average trades (DATs) of approximately 7.4 million, which reflects a year-over-year increase of about 30%. The firm has also achieved significant growth in pledged asset lending, with a 49% year-to-date increase to $23.4 billion, alongside improving capital ratios, evidenced by a 60 basis point year-over-year rise in the adjusted Tier 1 leverage ratio to 7.3%. Additionally, Schwab's annualized seasonally adjusted revenue growth of 5.8% marks its strongest performance in over two years, supported by strong net account growth of nearly 7%, indicating solid momentum and revenue growth potential moving forward.
Bears say
The financial performance of Charles Schwab has been negatively impacted by modest declines in net interest income (NII) and a lower interest rate curve that consensus estimates appear not to be recognizing. Additionally, recent seasonally adjusted growth calculations have indicated that net new asset (NNA) flows fell below 5% in May and June, following integration challenges from the TD Ameritrade acquisition. The firm faces potential downside risks from macroeconomic and geopolitical events, low cash build-up, and rising long-term rates that could adversely affect accumulated other comprehensive income (AOCI) and delay capital returns.
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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