Wells Fargo: Fairly Valued With Limited Upside, Justifying a Hold Rating

Citi analyst Keith Horowitz has maintained their neutral stance on WFC stock, giving a Hold rating on December 17.

Keith Horowitz has given his Hold rating due to a combination of factors related to Wells Fargo’s current positioning and valuation. He expects the bank’s 2026 performance guidance to be broadly consistent with market expectations, limiting the potential for positive surprises that could re-rate the stock higher. Revenue is projected to grow modestly, supported by fee income in wealth management, cards, and investment banking, along with a slight improvement in net interest margin and low-to-mid single-digit loan growth. On the cost side, he anticipates only moderate expense growth as prior headcount reductions and increased use of AI help gradually improve efficiency.

At the same time, Horowitz views the stock as already pricing in management’s medium-term return targets, with Wells Fargo trading as a crowded long and its valuation reflecting a 17–18% ROTCE that aligns with his normalized assumptions. He sees limited room for earnings upgrades because his projections for net interest income, credit costs, and capital returns are largely in line with consensus and company guidance. Expected credit losses and only modest reserve build are not enough, in his view, to alter the risk/reward materially at current levels. As a result, he concludes that the shares are fairly valued relative to their outlook, justifying a Hold rather than a more active recommendation.

In another report released on December 17, KBW also maintained a Hold rating on the stock with a $101.00 price target.