Morgan Stanley raised the firm’s price target on Wells Fargo (WFC) to $87 from $77 and keeps an Overweight rating on the shares. After the Fed lifted Wells Fargo’s $1.95T asset cap that had been in place for over seven years, the firm noted that this catalyst comes two quarters earlier than it had modeled and expects the release from the asset cap will spur a multi-year period of growth at Wells along with slowing expense growth. The firm expects Wells will raise its return on tangible common equity target of 15% to 15-17%-plus, the analyst added.
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