Wall Street Experts Predict Positive Outlook for Charles Schwab Shares?
Charles Schwab Corporation Posts Impressive Q2 2025 Results, Analysts Upbeat on Growth Trajectory
Charles Schwab Corporation (SCHW), a leading financial services firm based in Texas, reported record Q2 2025 results on Jul. 18, showcasing robust growth and investor confidence.
The company's net income for the quarter stood at a impressive $2.1 billion, with adjusted earnings per share (EPS) of $1.14. These figures surpassed consensus estimates ($1.09 EPS) and demonstrated a 56% year-over-year increase in bottom-line growth. Revenue grew 25% year over year to $5.85 billion, driven by diversified sources including asset management, trading revenues, and higher net interest income.
Core net new assets increased 31% to $80.3 billion, supported by over 1 million new brokerage accounts and a record $10.76 trillion in client assets. This growth indicates a robust customer acquisition and expansion in client assets.
Efficient operations led to improved profit margins, with the pre-tax margin increasing to 47.9%.
Analysts at Morgan Stanley have taken note of Schwab’s strong performance and financial strength, raising their price target on SCHW from $117 to $131 and assigning an "overweight" rating. Other analysts have also upgraded or raised targets, reinforcing a sentiment of a moderate buy with a consensus target around $99.35. However, Morgan Stanley’s target is notably higher, signaling strong bullishness on the stock.
Key points supporting the positive outlook include:
- Strong revenue and earnings growth well above estimates.
- Expansion in client assets and new account openings indicating robust customer acquisition.
- Efficient operations leading to improved profit margins.
- Multiple analysts upgrading ratings and price targets, with Morgan Stanley leading the upgrade momentum.
With these impressive results and analyst actions, Charles Schwab is positioned for continued growth with a strong market position, diversified revenue streams, and investor confidence reflected in upgraded price targets and optimistic outlooks.
SCHW's stock has surged 53.2% over the past 52 weeks and 31.2% on a year-to-date basis. The street-high target for SCHW is $131, suggesting a 34.9% upside potential.
For more information, view the website Disclosure Policy here. It is important to note that on the date of publication, the author did not have positions in any of the securities mentioned in the article.
As of the last count, out of the 21 analysts covering the stock, there are 13 "Strong Buys," four "Moderate Buys," two "Holds," one "Moderate Sell," and one "Strong Sell." The consensus rating for Charles Schwab (SCHW) is "Moderate Buy."
On Jul. 29, Morgan Stanley analyst Michael Cyprys reiterated an "Overweight" rating on Charles Schwab and raised the 12-month price target from $117 to $131. The S&P 500 Index (SPX) has risen 18.4% over the past year and 7.6% in 2025.
In comparison, the SPDR S&P Capital Markets ETF's (KCE) has gained 34% over the past year and 11.1% this year, but SCHW has outpaced these figures.
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- The strong performance and financial strength of Charles Schwab Corporation, as indicated by impressive earnings and revenue growth, expansion in client assets, and improved profit margins, have encouraged analysts to invest in the company, with Morgan Stanley raising their price target from $117 to $131 and assigning an "overweight" rating.
- With the upward revision of price targets and optimistic outlooks from multiple analysts, coupled with a robust customer acquisition and expansion in client assets, Charles Schwab Corporation is poised for further growth in the business and investing landscape.
