Charles Schwab Corporation (NYSE:SCHW) reported strong results for the first quarter and has "broad monetization opportunities ahead," according to JPMorgan analyst Kenneth Worthington.

The Charles Schwab Analyst: Worthington maintained an Overweight rating, while raising the price target from $128 to $131.

The Charles Schwab Thesis: The company reported net revenues of $6.5 billion and adjusted pre-tax margins of 51.4%, Worthington said.

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Trading revenue remained strong, growing to $1.09 billion in the first quarter from $1.07 billion in the previous quarter, with total daily average trade growth of 20% sequentially, he added.

Despite robust trade volumes, revenue per trade declined to $1.80 due to increased client uncertainty.

Total core net new assets came in at $140 billion and net interest income at $3.14 billion, he added.

Worthington expects Charles Schwab to witness "steady growth in commission rates from here."

The company has several platform monetization initiatives that will allow it to become "even more of a scaled provider over time," the analyst wrote.

He added that the launch of crypto trading (Bitcoin and Ethereum) and the integration of private-market trading and investments through Forge are likely to enable capability expansion and a stronger client value proposition.

Prediction markets could become another opportunity for Charles Schwab, Worthington said. "As Schwab's platform continues to expand (along with its branches), its ability to extract economics from suppliers (e.g., asset managers) is increasing as well," the analyst wrote. The company has been in discussions with more than 400 asset managers "around evolving ETF economics and expects to have a strategic roadmap in place by the end of the year," he added.

SCHW Price Action: Shares of Charles Schwab had risen by 0.23% to $92.83 at the time of publication on Friday.

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