Posted 3/23/2024, 2:14:29 PM
Schwab Stock Upgraded to Buy on Expected Growth from Bullish Markets
- Upgraded Charles Schwab (SCHW) stock from Hold to Buy due to expected earnings growth from emerging bull market in equities and other assets
- Vibrant markets should increase trading volumes, asset values, new investors, and margin lending for Schwab
- February metrics showed strength - higher core net new assets, increased daily trades, growing margin loan balances
- Raised 2024-2026 EPS estimates for Schwab; now forecast EPS of $3.6-$3.8 in 2024, $4.6 in 2025, $5.4 in 2026
- New fair value estimate of $75 per share based on residual earnings model with updated growth forecasts