Charles Schwab (SCHW): A Target Cut Could Be Missing The Bigger Growth Story

With stock buybacks of $4.58 billion in the 12 months through September 2025, The Charles Schwab Corporation (NYSE:SCHW) is among the 20 Stocks with the Biggest Share Buybacks.

The Charles Schwab Corporation (NYSE:SCHW) received a revised analyst outlook on April 20 when Argus lowered its price target to $108 from $117 while maintaining a Buy rating following first-quarter results. The firm highlighted that revenue increased a strong 16%, supported by gains across major operating categories, while net interest margin expanded and total client assets reached $11.8 trillion. Argus added that it expects Schwab to deliver above-peer-average medium-term growth driven by innovative product offerings and continued market share gains.

On April 17, Morgan Stanley analyst Michael Cyprys lowered the price target on The Charles Schwab Corporation (NYSE:SCHW) to $125 from $135 while reiterating an Overweight rating. The analyst stated that the first-quarter report reinforced what the firm views as an increasingly differentiated earnings and growth profile within the brokerage sector, and following the release, Morgan Stanley raised its fiscal 2026 and 2027 EPS estimates by 3.6% and 4.7%, respectively.

The Charles Schwab Corporation (NYSE:SCHW) is a leading financial services company providing securities brokerage, banking, wealth management, and advisory solutions to retail investors and institutional clients. Founded in 1971 in San Francisco, the company is now headquartered in Westlake, Texas.

Despite modest price target reductions, both firms maintained constructive ratings while citing stronger earnings momentum, asset growth, and rising profitability metrics. Combined with $4.58 billion of stock repurchases over the prior twelve months, SCHW appears well-positioned to compound shareholder value through earnings growth and capital returns.

While we acknowledge the risk and potential of SCHW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SCHW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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