Morgan Stanley upgraded SCHW to "overweight" from "equal weight"
Bank stock Charles Schwab Corporation (NYSE:SCHW) was last seen up 5.7% to trade at $74, after an upgrade from Morgan Stanley to "overweight" from "equal weight." The firm called it a defensive play amid recession fears, but also threw in a price-target cut to $76 from $91, while no fewer than three other analysts slashed their price objectives as well.
This bull note comes less than a week after Citigroup upgraded SCHW to "buy," citing growth potential as the firm "shifts to offense." Of the 23 analysts in coverage, 18 carry a "buy" or better rating, while the 12-month consensus price target of $86.89 is a 17% premium to current levels.
Like most market components, SCHW is fresh off a sharp pullback, yesterday hitting its lowest level since October. Today's pop has the equity reclaiming support at the $72 level, as well as the 320-day moving average. Plus, the shares have swung back to the positive side of their year-to-date breakeven.
When weighing in on Charles Schwab stock, options look like a decent way to go. The stock's Schaeffer's Volatility Scorecard (SVS) of 87 out of 100 means it's outperformed options traders' volatility expectations over the past year.