Wells Fargo (WFC) is gearing up to report its second-quarter earnings, scheduled for July 15. Meanwhile, investors are watching closely to see how the banking giant performs amid a mixed economic backdrop. Wall Street mostly expects Wells Fargo to report higher revenue and profits compared to last year. However, with the stock recently hitting record highs, the upside potential remains limited. Year-to-date, WFC stock has gained over 17%.
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What to Expect from Wells Fargo’s Q2 Earnings
Analysts expect Wells Fargo to report earnings per share (EPS) of $1.41 for the second quarter, slightly above the $1.33 posted in the same period last year. Revenue is projected to come in at $20.76 billion, just ahead of the $20.69 billion recorded a year ago.
However, net interest income (NII) is expected to dip slightly to $11.9 billion from $11.92 billion, reflecting potential pressure from moderating interest rates and shifts in loan demand.
Analysts Raise Price Targets on WFC Stock
Ahead of the Q2 reveal, several analysts have raised their price targets on WFC stock this week.
Among them, analyst John McDonald at Truist Financial increased his price target from $83 to $86 while maintaining his Buy rating. The firm said that recession fears that triggered a sharp sell-off last quarter have already been reflected in valuations, along with the market’s rebound since then.
Meanwhile, Keefe Bruyette’s five-star-rated analyst Christopher McGratty has increased his price target on WFC stock from $80 to $88 and maintained a Hold rating. The firm sees long-term advantages in its large scale of operations, which delivers strong and consistent returns with a high degree of predictability.
Is Wells Fargo a Good Buy Right Now?
Overall, Wall Street has a Moderate Buy consensus rating on WFC stock, based on 12 Buys and seven Holds assigned in the last three months. The average Wells Fargo stock price target of $84.33 implies about 2.4% upside potential from current levels.
