Analyst Vivek Juneja of J.P. Morgan maintained a Hold rating on Wells Fargo, retaining the price target of $83.00.
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Vivek Juneja has given his Hold rating due to a combination of factors influencing Wells Fargo’s financial outlook. The bank’s second-quarter results were lackluster, with a soft revenue growth and a lowered outlook for net interest income, primarily due to reduced trading income. Additionally, while the lifting of the asset cap presents potential for growth, the benefits remain uncertain, and the bank’s trading revenues have not kept pace with peers.
Furthermore, Wells Fargo’s credit card loan growth has significantly slowed, and its wealth management revenue growth has been weak. Although the bank maintains strong capital ratios and controlled expenses, the outlook post-consent order lift is unclear, particularly with ongoing investments in technology and trading. These elements contribute to the uncertainty surrounding Wells Fargo’s longer-term earnings and expense outlook, justifying the Hold rating.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $85.00 price target.