Bank of America Securities analyst Ebrahim Poonawala has reiterated their bullish stance on WFC stock, giving a Buy rating today.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight Wells Fargo’s potential for profitability and growth. The bank is expected to achieve a significant improvement in its Return on Tangible Common Equity (ROTCE), projected to rise to 17% by 2028, alongside an impressive average annual EPS growth of 16% from 2026 to 2028. This growth is supported by strategic initiatives such as increased share buybacks, reduced credit costs, and robust Pre-Provision Net Revenue (PPNR) growth, which are anticipated to drive earnings per share higher in the coming years.
Additionally, Wells Fargo’s management has provided strategic clarity following the removal of the Federal Reserve’s asset cap, setting a higher medium-term ROTCE target of 17%-18%. The bank’s leadership has also identified substantial growth opportunities across various sectors, including consumer and commercial banking as well as wealth management. Despite concerns regarding asset sensitivity amid potential Fed rate cuts, the bank’s balance sheet and fee income growth are expected to mitigate these impacts. These factors contribute to the positive outlook and the Buy rating assigned by Poonawala.
In another report released today, Barclays also maintained a Buy rating on the stock with a $94.00 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.