Charles Schwab price target raised to $114 from $110 at Goldman Sachs

Goldman Sachs raised the firm’s price target on Charles Schwab (SCHW) to $114 from $110 and keeps a Buy rating on the shares. Goldman sees more room for the stock to run with Charles Schwab’s EPS growth acceleration firmly underway and on track to continue through 2026 and 2027 on the back of 10% net interest income compound annual growth rate despite lower interest rates, with potential upside if lower interest rates result in higher allocations to transactional cash, the analyst tells investors in a research note. The firm is encouraged by Schwab’s ability to hedge cash revenues against a lower forward curve and the healthy build in client cash balances and is optimistic on the trajectory of transactional cash balances moving forward.