Street View: Charles Schwab poised for growth in 2025 despite near-term headwinds
** Charles Schwab's SCHW.N second-quarter profit fell 2% as the brokerage paid out more interest on client deposits and its own borrowing
RECOVERY INTACT
** J.P. Morgan ("overweight," PT: $78) says despite 2Q'24 results being "sobering", the path to recovery was still intact, with underlying efforts that would drive earnings in 2025 and beyond
** Raymond James ("outperform," PT: $76) sees a path for SCHW's high-cost funding to decrease by the end of 2025, leading to EPS and net interest income upside
** Morningstar (fair value: $76) says earnings took a step back in this quarter but believes medium- to long-term trends like client asset growth and higher client cash-related revenue over time were intact
** Citigroup ("neutral," PT: $75) says though management has taken actions to focus on asset growth, they would take time to enact and extend the "transition period" from 2024 to multiple years
Reporting by Gokul Pisharody in Bengaluru
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