Charles Schwab price target raised to $87 from $86 at JPMorgan

JPMorgan raised the firm’s price target on Charles Schwab to $87 from $86 and keeps an Overweight rating on the shares post the Q3 report. The gradual deceleration in the pace of cash sorting activity is clear, but JPMorgan does not expect September’s inflection in transactional sweep cash to become the new normal, the analyst tells investors in a research note. The firm says that whether sustainable or not, the elevated cash levels allowed Schwab to pay down $9B of short-term funding during the quarter. It thinks 2025 is “setting up to be a more deliberate path toward Schwab earnings normalization.” JPMorgan also thinks Schwab’s stock narrative will begin to shift toward medium-term potential around areas such as growth in wealth and the potential for its broader alternatives platform launch.