Barclays Hikes Charles Schwab Price Target to $127: 2026 Guidance Crushes Street Expectations

"Barclays raised its price target on Charles Schwab ( NYSE:SCHW | SCHW Price Prediction) to $127 from $117, keeping an Overweight rating after the brokerage giant's fiscal 2026 revenue and expense guidance came in ahead of consensus. The price target raise reflects continued bullish positioning on a name where the bull thesis hinges on earnings power exceeding Street models."

"For long-term investors, the analyst upgrade signals that Schwab's profit engine is firing on multiple cylinders even as the stock trades well below the new target. The Analyst's Case Barclays pointed to growth opportunities, attractive valuation, AI-enabled capabilities, and wealth services expansion as the pillars of its bullish view."

"Schwab's 2026 revenue growth guidance of 14% to 15% meaningfully exceeds the prior analyst consensus of 12%, which typically drives upward estimate revisions across the sell-side. The signal is reinforced by other firms moving in the same direction. TD Cowen lifted its target to $109, Piper Sandler to $105, and Citizens reiterated at $120, with the consensus settling near a Moderate Buy and an average target of $114."

"Q1 2026 results showcased the model: EPS of $1.43, topping expectations, while revenue hit a record $6.5 billion, up 16% year-over-year. Schwab's asset gathering remained robust, with core net new assets of $140 billion and total client assets of $11.77 trillion, up 19% year-over-year. Net interest margin expanded to 3% from 3% as deposit funding costs compressed."

Barclays increased its Charles Schwab price target to $127 from $117 while maintaining an Overweight rating after fiscal 2026 revenue and expense guidance beat consensus. The update reflects confidence that Schwab’s earnings power can exceed Street expectations. The bullish view rests on growth opportunities, attractive valuation, AI-enabled capabilities, and expansion in wealth services. Schwab’s 2026 revenue growth guidance of 14% to 15% is above prior consensus of 12%, which can drive estimate revisions. Other firms also raised targets, lifting the average target near $114. Schwab’s business model combines brokerage, asset management, and banking, with Q1 2026 EPS of $1.43 and record revenue of $6.5 billion. Core net new assets were $140 billion and total client assets reached $11.77 trillion, while net interest margin rose to 3% as deposit funding costs compressed.

Read at 24/7 Wall St.