Redburn-Atlantic Upgrades Charles Schwab (SCHW) to Neutral, Raises PT to $82

The Charles Schwab Corporation (NYSE:SCHW) is one of the best wide moat stocks to buy now. On June 9, Redburn-Atlantic upgraded SCHW to Neutral from Sell, and lifted the price target from $82 from $65. This revision indicates a shift in the firm’s evaluation of Schwab’s place in the American retail wealth management industry. The stock has posted a promising 20% return year-to-date, and presently it trades close to its 52-week high of $89.84.

The analysts observed that Charles Schwab is a major player in the two fastest-growing divisions of the American retail wealth management sector. They pointed towards an optimistic outlook for SCHW as pressure from cash sweep issues starts to alleviate, which has enabled the company to lower high-cost financing. The $160 billion market cap company also demonstrates financial stability, given its 37 consecutive years of dividend payouts.

Redburn-Atlantic Upgrades Charles Schwab (SCHW) to Neutral, Raises PT to $82

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Despite the rating upgrade, the analysts remain cautious about the sustainability of the cash sorting recovery, noting that the market may not completely account for possible risks. Redburn’s EPS estimates for The Charles Schwab Corporation (NYSE:SCHW) are roughly 5% less than the market consensus for 2025 to 2027. Moreover, they added that potential changes to Schwab’s business model, such as lowering duration and shrinking the bank, could affect the company’s earnings capacity.

The analysts also observed that the present challenges faced by Schwab are less pressing than they were earlier. Redburn added that the ability to pay down high-cost debt and reinvest in the securities portfolio at greater yields offers a margin of safety to Schwab’s valuation.

The Charles Schwab Corporation (NYSE:SCHW) is an American financial services company providing wealth management, brokerage, banking, asset management, custody, and advisory services.

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