In a report released yesterday, Betsy Graseck from Morgan Stanley maintained a Buy rating on Wells Fargo, with a price target of $87.00.
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Betsy Graseck’s rating is based on several key factors that influence Wells Fargo’s financial outlook. Despite a recent dip in stock price due to concerns over net interest income guidance, the core earnings beat expectations, indicating underlying strength in the company’s operations. The adjustment in earnings per share projections reflects a positive outlook for 2025, driven by higher fee income and lower provisions, although partially offset by lower net interest income and a higher share count.
Graseck maintains the price target at $87, supported by a 13x 2026 target price-to-earnings ratio and a projected 12% return on equity. The bank’s strong capital markets performance and significant excess capital position provide a solid foundation for future growth strategies, including organic expansion, dividend increases, and strategic buybacks. These factors collectively underpin the Buy rating, suggesting confidence in Wells Fargo’s ability to achieve its financial targets and deliver shareholder value.
In another report released today, Barclays also maintained a Buy rating on the stock with a $87.00 price target.