Morgan Stanley analyst Michael Cyprys has maintained an Overweight rating on Charles Schwab (NYSE: SCHW) while raising the price target to $133 from the previous $125. The adjustment reflects a revised outlook on the stock's valuation potential and continued confidence in its performance relative to sector peers.

The rating indicates that Morgan Stanley still expects Charles Schwab to outperform the broader market or its industry competitors over the medium term. The increased price target suggests a recalibration of the expected upside based on current market conditions and company fundamentals.

Rating and Price Target Details

The following table outlines the revised analyst metrics for Charles Schwab:

The Overweight designation implies that the stock is considered attractive relative to other investment options within the coverage universe. Investors holding the stock may view the maintained rating and higher target as a signal of confidence in the company's underlying business strength.

The Charles Schwab Corporation (CSC) received the results of the Federal Reserve’s 2026 Comprehensive Capital Analysis and Review (CCAR), revealing a capital position that far exceeds regulatory requirements. The review estimated Schwab’s minimum capital ratios under a supervisory severely adverse scenario spanning from December 31, 2025, to March 31, 2028. The Federal Reserve voted earlier this year to maintain current stress capital buffer requirements until 2027, leaving Schwab’s stress capital buffer (SCB) at the 2.5% minimum.

Schwab reported a Common Equity Tier 1 (CET1) ratio of 26.3% as of March 31, 2026. This ratio is well above the regulatory minimum of 4.5% combined with the SCB of 2.5%, attributed to the relatively low risk nature of the company's balance sheet assets. The strength of this ratio underscores the firm's financial stability amid varying economic conditions.

The company ended the first quarter of 2026 with a consolidated Tier 1 Leverage Ratio of 8.9%, a decrease from 9.3% at year-end 2025. Despite this decline, the leverage ratio remains robust, reflecting the company's principles-based approach to balance sheet management.

CFO Mike Verdeschi commented on the results, stating that the CCAR outcomes highlight the strength of Schwab’s capital position and diversified business model. He emphasized that the company's approach establishes a foundation of safety and soundness, allowing it to support clients' evolving needs and deliver profitable growth through economic cycles.

Key Capital Metrics