Charles Schwab downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Charles Schwab (SCHW) to Market Perform from Outperform while keeping its price target unchanged at $105. The firm attributed the change to valuation after the stock’s recent rally, according to a research note. BMO said Schwab’s fundamentals remain strong, but the risk/reward is more balanced at current levels. The analyst also pointed to continued uncertainty from “cash monetization fears,” arguing that an overhang is not expected to ease soon. While Schwab’s revenue diversification can provide offsets, BMO added that the benefits may take time and are not guaranteed to materialize. The downgrade keeps the focus on how quickly Schwab can convert diversification efforts into results as the market digests the rally.