Raymond James Reiterates Outperform Rating on Charles Schwab Corp. (SCHW)
Raymond James analyst Patrick O\'Shaughnessy reiterated an Outperform rating and $99.00 price target on Charles Schwab Corp. (NYSE: SCHW).
The analyst comments "Schwab posted better than expected net interest income, which drove top-line results higher than forecast. This, along with lower adjusted operating expenses, drove upside to EPS in the quarter. Both better net interest margin and average interest earning asset balances contributed to the higher net interest income. Net new client assets, while seasonally slower, were generally in line with expectations and total NNA TTM growth is showing signs of continued acceleration. 2Q25 EPS BEAT Non-GAAP EPS of $1.14 was ahead of our forecast at $1.12 and consensus of $1.10. Total revenues of $5.851 billion was 1% above our model and 2% ahead of the Street. Overall, net interest income drove upside in the quarter finishing $84 million better than the Street; other revenues (which primarily reflect pass-through costs) also contributed to the top-line beat. Adjusted operating expense of $2.920 billion also finished 1% below our/consensus forecasts primarily due to lower employee comp and benefits. Higher preferred dividends and a higher tax rate relative to consensus was a $0.01 drag on EPS each."
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Shares of Charles Schwab Corp. closed at $93.10 yesterday.