Citi analyst Keith Horowitz has maintained their neutral stance on WFC stock, giving a Hold rating yesterday.
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Keith Horowitz has given his Hold rating due to a combination of factors influencing Wells Fargo’s performance. The bank’s recent earnings report showed a miss in net interest income (NII), which led to a downward revision of its full-year NII guidance. Despite this, there was notable growth in advisory assets, which is expected to boost future earnings per share through increased fee revenue.
However, this positive outlook is tempered by anticipated higher expenses as management plans to invest in the franchise’s growth, especially now that the asset cap has been lifted. Additionally, while the credit outlook remains robust, Wells Fargo’s stock trades at a relative premium compared to its peers, which supports the neutral stance. Overall, these mixed factors contribute to the Hold rating, reflecting a balanced view of potential risks and opportunities for the stock.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $88.00 price target.