Analysts Are Cutting Price Targets of These 5 Stocks

03. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 87

The Charles Schwab Corporation (NYSE:SCHW) specializes in various financial services, including wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. However, the company has experienced a significant decline in its share price, with a year-to-date decrease of 33.61%.

On April 17, The Charles Schwab Corporation (NYSE:SCHW) announced its Q1 financial results, reporting revenue of $5.12 billion. This figure reflected a 9.6% increase compared to the previous year but fell short of the Street consensus by $10 million. Additionally, the company anticipates a more substantial year-over-year decline in Q2 revenue. This projection is attributed to factors such as a reduced net interest margin (NIM), a smaller base of interest-earning assets, and decreased trading activity. On June 26, Steven Chubak, an analyst at Wolfe Research, maintained an Outperform rating for The Charles Schwab Corporation (NYSE:SCHW) but adjusted the price target from $62 to $60.

Generation Investment Management Global Equity Strategy made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its first quarter 2023 investor letter:

“Your portfolio has been relatively insulated from recent banking troubles. The Charles Schwab Corporation (NYSE:SCHW) is the only financials company in your portfolio (forming 2.37% of it). The company’s share price has suffered. We are watching the situation closely. Regulators have responded quickly to the turmoil. After a few weeks when people were withdrawing deposits from small banks across America, the rush seems to have slowed.

We do not have strong views on whether the banking turmoil will tip the global economy into recession. We are not economists, and in any case the global economy has rarely been so hard to predict. Forecasters are trying to weigh up a large number of highly unusual variables: a land war in Europe, the fallout from massive fiscal stimulus in 2020– 21 and high inflation. In this environment all judgments about the macro economy are uncertain.”