Charles Schwab Corporation (SCHW  ) is powering ahead with accelerated earnings growth and increased capital returns, impressing analysts and raising price targets. The company reported better-than-expected third-quarter results on Thursday.

Here are some key analyst takeaways:

  • Goldman Sachs analyst Alexander Blostein reiterated a Buy rating, while raising the price target from $110 to $114.
  • Keefe, Bruyette & Woods analyst Kyle Voigt maintained an Outperform rating, while lifting the price target from $109 to $111.
Goldman Sachs: Charles Schwab's NII growth continued to accelerate in the quarter, coming in 3% higher than Street estimates, Blostein said in the note.

The third-quarter results were supported by a significant increase in securities lending revenues, which is unlikely to recur, the analyst stated. He added, however, that NII is likely to continue to grow.

Blostein further commented that there is more room for the stock to run, as Charles Schwab's earnings growth acceleration is "firmly underway" and on track to continue through 2026 and 2027, driven by:

  • An NII CAGR of around 10%
  • Newer client monetization opportunities in the alts platform
  • The upcoming crypto platform launch set to contribute more meaningfully
  • An acceleration of capital returns backed by share repurchases of $2.7 billion
Keefe, Bruyette & Woods: Charles Schwab reported adjusted earnings of $1.31 per share, beating consensus of $1.24 per share, with the beat being driven by higher NII and a lower tax rate, Voigt said. The company expects three cuts of 25 basis points (bps) each in the fed funds rate, up from its prior expectation of two cuts, he added.

Charles Schwab has continued to witness "strong engagement from clients" so far in October, the analyst stated. The company repurchased around $2.7 billion worth of shares in the quarter, higher than estimates of $1.4 billion, he commented.

"We continue to believe consensus is underestimating the company's capacity to return capital over the coming years," Voigt further wrote.

SCHW Price Action: Charles Schwab shares were up 0.70% at $94.06 at the time of publication on Friday, according to Benzinga Pro data.