Wells Fargo’s Regulatory Progress and Growth Potential: A Positive Investment Outlook

Analyst Betsy Graseck from Morgan Stanley maintained a Buy rating on Wells Fargo (WFC – Research Report) and keeping the price target at $86.00.

Betsy Graseck’s rating is based on Wells Fargo’s significant progress in resolving regulatory issues, as evidenced by the termination of the 2021 consent order related to its Home Lending business. This marks the eleventh consent order lifted since Charlie Scharf took over as CEO, indicating a positive trajectory in addressing past compliance problems.
Furthermore, the removal of these orders reflects Wells Fargo’s ongoing efforts to mitigate economic and reputational damage, which is expected to enhance its market position over time. The anticipated reduction in operating losses, projected at $1.1 billion by 2025, further supports the potential for improved financial performance. The resolution of these issues is seen as a catalyst for future growth, making Wells Fargo an attractive investment opportunity.