Morgan Stanley Raises Price Target on Charles Schwab to $131, Citing Trading Revenues, Net Interest Margin Expansion, and Asset Management Fees.

Morgan Stanley raised its price target on Charles Schwab (SCHW) to $131 from $117 and maintained an Overweight rating. The firm attributed the update to increased trading revenues, net interest margin expansion, and asset management fees. Charles Schwab is a savings and loan holding company offering brokerage, wealth management, custody, and asset management services.

Morgan Stanley has raised its price target for Charles Schwab (SCHW) to $131 from $117, maintaining an Overweight rating. The firm attributed the update to increased trading revenues, net interest margin expansion, and asset management fees. Charles Schwab is a savings and loan holding company offering brokerage, wealth management, custody, and asset management services.

The decision comes on the heels of Charles Schwab's impressive financial performance. The company reported record growth in core net new assets for July 2025, with an impressive $46.9 billion, marking a 62% increase compared to the same month last year. Total client assets reached $10.96 trillion, reflecting a 15% year-over-year rise. The company also opened 377,000 new brokerage accounts, a 15% increase from July 2024. Additionally, Charles Schwab’s board authorized a new $20 billion share repurchase program, replacing the previous $15 billion program, which had $6.9 billion remaining [1].

Charles Schwab’s recent expansion of its 24-hour trading capabilities to include over 1,100 securities further enhances its thinkorswim platform suite. The company also declared a regular quarterly cash dividend of $0.27 per common share, payable on August 22. These developments underscore the company's commitment to innovation and growth, contributing to the positive outlook from Morgan Stanley.

The positive analyst sentiment is not isolated to Morgan Stanley. Truist Securities raised its price target on Charles Schwab to $112.00 from $107.00, while maintaining a Buy rating. Keefe, Bruyette & Woods also raised their price target to $108.00, following Schwab’s adjusted earnings per share of $1.14, which surpassed expectations [2].

These positive developments reflect Charles Schwab's robust financial performance and its ability to attract and retain clients. As the company continues to innovate and expand its service offerings, investors can expect to see further growth and potential upside in the stock price.

References:
[1] https://ca.investing.com/news/analyst-ratings/charles-schwab-stock-price-target-raised-to-112-by-truist-on-strong-growth-93CH-4162686
[2] https://www.marketbeat.com/instant-alerts/filing-charles-schwab-investment-management-inc-sells-312986-shares-of-kinder-morgan-inc-nysekmi-2025-08-07/