Keefe, Bruyette & Woods Upgrades Charles Schwab Corp. (SCHW) to Outperform

Keefe, Bruyette & Woods analyst Kyle Voigt upgraded Charles Schwab Corp. (NYSE: SCHW) from Market Perform to Outperform with a price target of $84.00 (from $76.00).

The analyst comments: "Upgrading SCHW Back to Outperform (After Moving to MP in January). SCHW has performed in-line with the broader market since mid-January (+16.8%), but has lagged most peers (OP-rated IBKR +41%, OP-rated LPLA +21%, MP-rated HOOD +111%). Our call at the time of our downgrade was that SCHW’s sweep cash trajectory would likely be challenged through 1H24, and with it, consensus earnings estimates, which has generally played out. We maintain our view that 2026 consensus EPS is still likely slightly too high (our estimate is -5% below FactSet consensus, or -1% below Visible Alpha consensus). However, with Fed rate cuts now growing increasingly likely within the next few months (which we believe should help sweep cash inflect), we prefer not to be overly tactical with timing our upgrade back to Outperform."

For an analyst ratings summary and ratings history on Charles Schwab Corp. click here. For more ratings news on Charles Schwab Corp. click here.

Shares of Charles Schwab Corp. closed at $73.20 yesterday.

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