Morgan Stanley Adjusts Charles Schwab (NYSE: SCHW) Price Target to $125 Amid Strategic Crypto Expansion

• Morgan Stanley lowered its price target for Charles Schwab but maintained an "Overweight" rating, indicating continued confidence in the stock's investment outlook.
• Charles Schwab's Q1 results showed mixed performance, with net revenue and net interest margin slightly missing forecasts, but net income exceeded expectations.
• Strong client engagement, significant net new assets, and a strategic entry into spot crypto trading highlight Schwab's growth and competitive positioning in the financial services market.

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.