12:25 PM EDT, 03/21/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target price by $12 to $84 on a forward P/E of 17.5x our 2025 EPS estimate, a slight discount to SCHW's 10-year average (22.2x) due to still elevated levels of high-cost short-term funding and minor cash-sorting headwinds. We trim our 2024 EPS estimate by $0.05 to $3.53 and 2025's by $0.07 to $4.78. We believe SCHW is well positioned to take advantage of interest rates that look likely to remain elevated into 2025 as it continues to pay down short-term funding sources, allowing it to benefit from net interest margin (NIM) expansion while most peers are facing NIM pressure. This should allow for net interest income growth of 3%-6% in 2024 before accelerating to 15%-20% growth in 2025, in our view. Further, we believe deposit growth and cash sorting headwinds will continue to ease through 2024. SCHW should also benefit from positive equity market tailwinds, which could drive asset management and administrative growth, strong net new asset inflows, and increased client trading volumes moving forward.