"Deutsche Bank maintained its Buy rating on SCHW shares, citing good Q1 results and a 'robust' earnings outlook. JPMorgan kept its Overweight rating, viewing the Q1 report as solid and expecting Schwab's net interest margin to expand throughout 2026."
"JPMorgan's Worthington acknowledged that AI concerns around cash sorting have dominated investor conversation following earnings, but argued that Schwab has secular tailwinds and strategic monetization opportunities that make those concerns manageable."
"Schwab's net interest margin expanded to 3% from 3% year over year, while the average rate paid on deposits fell dramatically from 1% to 0%. That deposit cost compression drives profitability higher."
"Schwab's GAAP net income rose 30% year over year to $2.479 billion, and the pre-tax profit margin expanded to 49% from 44% in the prior year period."
Charles Schwab's stock received price target boosts from Deutsche Bank and JPMorgan after a strong first-quarter earnings report. Deutsche Bank raised its target to $127, while JPMorgan increased its target to $131. Both firms maintained positive ratings, citing solid Q1 results and expectations for net interest margin expansion. Schwab's net interest revenue grew 16% year over year, and total client assets reached $11.77 trillion. The company also reported a 30% increase in GAAP net income and raised its quarterly dividend by 19%.
Read at 24/7 Wall St.
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