11:35 AM EDT, 04/15/2024 (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 keep our target at $84 on a forward P/E of 18.5x our 2025 EPS estimate, a slight discount to SCHW's 10-year forward average (22.2x) as SCHW continues to contend with elevated short-term funding levels and lower interest earning assets. We keep our 2024 EPS estimate at $3.53 and lower 2025's by $0.24 to $4.54. However, we believe SCHW remains well positioned to pay off short-term funding sources, driving net interest margin (NIM) expansion to near 3.0% by year-end 2025 (in line with guidance) while continuing to strengthen capital levels. Revenues fell 7% Y/Y in Q1, driven by a 19% decrease in net interest revenue (NIR) as NIMs contracted by 17 bps Y/Y (2.19% vs. 2.02%). However, we saw sequential improvement with revenues up 6% vs. Q4 and NIMs improving by 13 bps. Asset management and administrative revenues jumped 21% Y/Y on healthy equity market tailwinds, while trading dropped 8% Y/Y due to unfavorable trading mix (revenue per trade $2.25 vs. $2.44). SCHW saw strong net new asset growth of $88B in Q1.