Morgan Stanley Doubles Down on Schwab After Earnings Beat

Morgan Stanley raised its price target on Charles Schwab (SCHW) to $95, reiterating its "Overweight" rating, after the company reported record second-quarter earnings.

Rating Change

• Previous Rating: Overweight, price target $85.
• Current Rating: Overweight, price target $95.

Analyst Rationale

Morgan Stanley analysts believe Schwab's strong Q2 performance—adjusted EPS of $1.62 on record revenue—is not yet fully reflected in the stock price. They view the post-earnings dip as an attractive entry point.

Context

Despite the strong results, Schwab's stock fell 2% after the announcement, prompting Morgan Stanley to double down on its bullish stance. Other analysts are mixed, but most agree the fundamentals are solid.

Conclusion

Morgan Stanley appears confident in Schwab's continued strength, especially in a high-interest-rate environment that benefits its brokerage model. However, market valuation and rate expectations remain key factors.