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Brokerage Firm Charles Schwab Rises on Analyst Upgrades

Charles Schwab traded higher after analysts at Goldman Sachs and Wolfe upgraded the discount brokerage and raised their price targets.

Shares of Charles Schwab  (SCHW) - Get Charles Schwab Corporation (The) Report were higher on Monday after Goldman Sachs added the largest publicly traded e-broker to its Conviction Buy list ahead of its earnings report.

Goldman raised its price target on the stock to $77 from $67.

Shares of the Westlake, Texas, company at last check rose 2.6% to $68.19. The stock has risen more than 25% this year.

Goldman Sachs analyst Will Nance added Schwab to the firm's conviction list on the firm's business momentum; potential for strong balance-sheet growth as customer cash remixes to the balance sheet; an improving interest-rate backdrop and increasing market probabilities of future short-term rate increases.

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"We believe the market will continue to look towards the high end of historical valuation ranges given short-term rates remain at zero (leading to significant optionality) and the stock has lagged the improvement in fundamentals quarter to date," Nance wrote in a recent note.

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Nance also raised his earnings estimates for Charles Schwab till calendar year 2024.

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Analysts at Wolfe Research also upgraded the stock, to outperform from peer perform, and raised their price target on the stock to a Wall-Street-high of $87
from $67.

Discount brokerage Charles Schwab has 12 buys, 8 holds, 1 sell and an average share-price target of $69 according to Bloomberg.

Last month, money manager Cathie Woods' ARK Investment Management listed Charles Schwab among its non-banking stock recommendations.

"Non-bank providers like Charles Schwab or Robinhood for investing, LendingClub for personal loans, and RocketMortgage  (RKT) - Get Rocket Companies Inc. Class A Report for mortgages are proliferating, perhaps because consumers want to diversify their risks or because banks cannot convince users to agree to more than one product or service," ARK Invest said in a recent research note