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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.

A corporate finance professional studying a financial performance chart.

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.

While we acknowledge the potential of SCHW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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