Charles Schwab (SCHW) Stock Forecast & Price Target

Charles Schwab demonstrated strong financial momentum, with net new asset growth reaching $48 billion, reflecting a 44% year-over-year increase and a 5.7% annualized growth rate. The company's net interest income is expected to improve significantly due to the repricing of its securities book, while March metrics indicate robust trading activity, with daily average trades increasing by 22% year-over-year. Additionally, with a substantial client asset base of $10.1 trillion and dominant positions in various financial markets, Schwab is well-positioned for continued revenue growth and profitability moving into 2025 and beyond.

Charles Schwab is facing several fundamental challenges that contribute to a negative outlook on its stock. Key risks include macroeconomic instability, potential declines in cash levels beyond typical seasonality, and an adverse impact from rising long-term interest rates that could affect earnings and capital returns. Additionally, the company's reliance on interest rates and the regulatory environment poses significant risks to its ability to attract new client assets and maintain growth, thereby potentially threatening its long-term earnings prospects.