Analysts Update Views on Keysight and Schwab

Recent research updates have refined analyst views on Keysight Technologies and Charles Schwab (SCHW), with both companies seeing modest adjustments to fair value estimates and a wave of revised price targets. The changes follow fresh quarterly data and evolving narratives around demand trends, earnings power, and capital return.

For Keysight Technologies, an updated fair value estimate has inched up from US$298.62 to US$301.54. The revision comes as analysts digest fiscal first quarter results that featured stronger orders and broader demand drivers, including but not limited to artificial intelligence related activity.

Several firms, including BofA, UBS, Goldman Sachs, Barclays (BARC.L), JPMorgan and Susquehanna, raised their Keysight price targets after the quarter. Their commentary emphasized healthier revenue trends and newly updated long term earnings frameworks from management.

BofA highlighted 22% year over year core order growth and pointed to management’s framework for fiscal 2026 adjusted EPS growth of 20% or more, supported by demand that extends beyond AI. UBS, Goldman Sachs and Barclays (BARC.L) cited accelerating AI related demand and strong wireline orders, with Barclays (BARC.L) noting that wireline orders surpassed wireless for the first time.

JPMorgan and Morgan Stanley (MS) referenced what they describe as growth acceleration and secular tailwinds, updating revenue and earnings forecasts following the results. JPMorgan also applied a higher target multiple as part of its more constructive stance.

Despite the broadly positive revisions, not all commentary was unequivocally bullish. Morgan Stanley (MS), while lifting its Keysight price target to US$268, maintained an Equal Weight rating. The firm signaled caution about how much of the recent strength in AI and aerospace and defense demand may already be captured in the stock’s valuation.

This mix of higher targets and valuation concerns has contributed to an evolving narrative for Keysight, in which growth drivers look more diversified, but questions remain about how optimistic current market expectations may be.

For Charles Schwab, updated analyst work now centers on a fair value estimate of US$120.32, only a slight move from the prior US$120.68. Even with this modest change, Street research has become more constructive, with several firms increasing price targets and emphasizing Schwab’s business model, earnings power, and capital return profile.

Citizens lifted its Schwab target to US$120 from US$110, pointing to expectations for “positive” fourth quarter results and “reasonable” guidance it views as conservatively framed. Barclays and Wolfe Research also raised targets to around the US$120 level, while Wolfe included Schwab in its Top 10 Themes for 2026 within Banks, Brokers, and Alternative Managers.

Raymond James raised its Schwab target to US$114, citing the pay down of high cost funding and the ability to reinvest maturing securities at higher yields. The firm also referenced retail trading, margin utilization, and asset growth as elements of its investment case.

Truist’s buy side survey identified Schwab among the top names where investors would be inclined to step in and defend financials, grouping it with large payment and card networks as a core sector holding. Additional target hikes came from UBS, BofA, TD Cowen, Deutsche Bank (DBKd), and Piper Sandler.

While Truist maintains Buy ratings, it described its broader consumer finance coverage as “flirting with bear market territory.” The firm cited investor concerns about AI related job losses and off network spend that could influence sentiment toward financials as a group, including Schwab.

As with Keysight, the result is a picture in which higher price targets and supportive commentary coexist with caution about broader sector headwinds. Investors tracking both companies are now weighing upgraded forecasts against questions about valuation and market sentiment.