On April 17, 2026, Morgan Stanley adjusted its investment outlook on Charles Schwab (NYSE: SCHW), lowering its price target to $125.00 from $135.00. Despite the reduction, the firm maintained its Overweight rating, which suggests analysts still see the stock as a good investment. At the time, Schwab's stock price was $92.62.
Charles Schwab is a major financial services company that offers brokerage, banking, and wealth management services to investors. It competes with other brokerage firms like Robinhood and crypto-native platforms such as Coinbase. This analyst rating change comes as Schwab navigates a complex financial environment and makes new strategic moves.
The price target reduction may reflect some of the pressures seen in Schwab's first-quarter results. The company's net revenue was $6.48 billion, just missing the expected $6.51 billion. Additionally, its net interest margin, which is the profit made from lending, was 2.88%, falling short of the 2.94% forecast.
However, the decision to maintain an Overweight rating is supported by strong signs of client engagement. Schwab reported net income of $2.48 billion, beating estimates. More impressively, it attracted $139.9 billion in total net new assets, significantly higher than the $123.5 billion projected by analysts.
This growth is driven by a 39% jump in trading activity and a new strategic entry into cryptocurrency. As highlighted by GuruFocus, Schwab launched a spot crypto trading service, causing shares of competitors Coinbase and Robinhood to fall. This move shows the company is actively expanding its services to attract more clients.
