The San Francisco-based savings and loan holding company is engaged in wealth management, securities brokerage, banking, money management and financial advisory services.
The reduced price target comes after the company's recent winter business update, which highlighted areas of progress over the past year and future opportunities in advisor and investor services, JMP Securities noted.
"Pressure on the two largest model inputs not within management's control, interest rates and market direction, has been relentless, and SCHW shares cannot decouple in the near term with the market continuing to assign more value to downside earnings potential in a volatile backdrop," the firm said in an analyst note.
However, as sentiment eventually moves back toward the middle and risk premiums reduce, the multiple on the long-term earnings view will also recover, JMP Securities added.
Shares of Charles Schwab closed up by 2.68% to $22.82 on Friday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
This is driven by a few notable strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share and increase in net income.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SCHWSCHW data by YCharts