Charles Schwab bulls are gaining momentum against the bears, priming the stock to go higher from here, according to Wells Fargo. Analyst Michael Brown upgraded shares of the financial services firm to overweight from equal weight. Brown also raised his price target to $93 from $89, implying upside of nearly 15% from current levels. The upgrade comes a day after the brokerage reported fourth-quarter results that beat analyst expectations. Shares rose nearly 6% on the back of those figures. “Our call on SCHW had been that the bull/bear debate would keep shares range bound. Following a solid print and call, the bear case is weaker, and we expect the bull case to prevail,” wrote Brown. “In 2025, we see continued [net interest margin] and oper. margin expansion, continued bal. sheet & capital improvement w/return of buybacks, and better organic growth.” Meanwhile, Charles Schwab’s management expects its net new assets to grow this year and eventually return to the 5% to 7% range. Brown added that he also forecasts Charles Schwab’s balance sheet to continue its recovery in 2025. “Asset side to benefit from loan demand and securities repricing benefits in 2H25. Importantly after an eight quarter hiatus, share buybacks could return by mid-25 and ramp sharply,” the analyst added. Charles Schwab stock has added 27% in the last 12 months, outpacing the S & P 500 in that time. Analysts are generally bullish on the stock. Of the 22 who cover Schwab, 14 have a buy or strong buy rating, according to LSEG. The remaining eight have a hold or underperform rating.
