Charles Schwab price target raised to $110 from $104 at Raymond James

Raymond James analyst Patrick O’Shaughnessy raised the firm’s price target on Charles Schwab (SCHW) to $110 from $104 and keeps an Outperform rating on the shares following Q3 results. With its high-cost funding largely paid down, the firm anticipates Schwab will pivot to reinvesting maturing securities at higher yields, which it expects will largely offset net interest margin headwinds from Fed Funds cuts. Beyond the improving near-term financial outlook, Raymond James is encouraged by solid trends in NNA and account growth and expects Schwab to return substantial capital to shareholders in the coming quarters. All told, the firm continues to see a path for significant EPS growth in 2025/2026 and sees upside to Schwab’s current valuation.