In a report released yesterday, Betsy Graseck from Morgan Stanley maintained a Hold rating on Wells Fargo, with a price target of $97.00.
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Betsy Graseck’s rating is based on a combination of factors that reflect both positive and challenging aspects of Wells Fargo’s financial outlook. The bank has shown improvements, such as raising its medium-term return on tangible common equity (ROTCE) target to 17-18%, which was achieved earlier than anticipated. Additionally, Wells Fargo has increased its asset base significantly and has a strong credit quality, with net charge-offs decreasing for the third consecutive quarter.
However, despite these positive developments, there are concerns that temper the overall outlook. The bank faces higher expenses that offset some of the gains from increased net interest income and fees. Furthermore, while the price target has been raised slightly, the modest upside and unchanged net interest income guidance for 2025 suggest limited near-term growth potential. These mixed factors contribute to the Hold rating, indicating that the stock is expected to perform in line with the broader market.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $83.00 price target.
WFC’s price has also changed moderately for the past six months – from $63.100 to $84.560, which is a 34.01% increase.