Piper Sandler Raises Charles Schwab Price Target to $105

Piper Sandler has raised its price target for Charles Schwab (SCHW) to $105. The firm stated that an improvement in net interest margin (NIM) will create upside potential for the company's revenues. Analysts anticipate that changes in interest rates will positively impact Schwab's profitability. The investment bank noted that a decline in Schwab's deposit costs and an increase in asset management revenues will support the net interest margin. It also highlighted that the company's low-cost deposit base reduces its sensitivity to interest rates. While maintaining an 'Overweight' rating on Schwab, Piper Sandler revised its earnings per share estimates upward. Analysts raised their 2024 EPS estimate from $3.50 to $3.70. This is not investment advice.