Wells Fargo downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Betsy Graseck downgraded Wells Fargo (WFC) to Equal Weight from Overweight with a price target of $95, up from $87. With the key catalyst of the asset cap removal now behind Wells the firm sees more limited upside from here relative to Overweight rated stocks in the big bank group, the analyst tells investors. The firm sees the next meaningful catalyst event being when the company will provide FY26 guidance in January and expects them to raise their ROTCE target from the current roughly 15%, but thinks “the market is also already largely there,” the analyst added.