On Thursday, RBC Capital Markets adjusted its price target on Wells Fargo & Company (NYSE:WFC), increasing it to $80 from the previous $72, while maintaining a Sector Perform rating on the bank's shares. The revision followed Wells Fargo's report of fourth-quarter earnings that surpassed expectations, attributed to several key financial metrics.
The analyst from RBC Capital provided updated earnings per share (EPS) forecasts for Wells Fargo, raising the 2025 estimate to $5.85 from $5.50 and the 2026 projection to $6.75 from $6.45. This adjustment reflects an anticipated stronger net interest income and robust noninterest income, coupled with lower expenses, although a higher provision for credit losses is expected to partially offset these gains.The analyst's commentary included an optimistic view of Wells Fargo's financial health and performance.
With the revised EPS estimates and the improved credit quality observed in the latest quarter, RBC Capital has set a new price target, signaling a positive outlook for the bank's financial trajectory over the next years. This optimism is supported by six analysts recently revising their earnings estimates upward, as reported by InvestingPro, which offers comprehensive analysis through its Pro Research Report, including detailed financial metrics and expert insights for over 1,400 US stocks.
This optimism is supported by six analysts recently revising their earnings estimates upward, as reported by InvestingPro, which offers comprehensive analysis through its Pro Research Report, including detailed financial metrics and expert insights for over 1,400 US stocks.
The analyst from RBC Capital provided updated earnings per share (EPS) forecasts for Wells Fargo, raising the 2025 estimate to $5.85 from $5.50 and the 2026 projection to $6.75 from $6.45. This adjustment reflects an anticipated stronger net interest income and robust noninterest income, coupled with lower expenses, although a higher provision for credit losses is expected to partially offset these gains.
The analyst's commentary included an optimistic view of Wells Fargo's financial health and performance. With the revised EPS estimates and the improved credit quality observed in the latest quarter, RBC Capital has set a new price target, signaling a positive outlook for the bank's financial trajectory over the next years.
In other recent news, Wells Fargo has been the subject of several analyst revisions and expectations following its recent financial performance. Keefe, Bruyette & Woods (KBW) increased the price target for Wells Fargo shares to $86, maintaining a Market Perform rating, based on projected stronger Net Interest Income (NII) growth. Truist Securities also raised its price target from $82 to $85, maintaining a Buy rating, after analyzing the bank's fourth-quarter 2024 performance and management guidance.
Raymond (NS:RYMD) James maintained a Strong Buy rating on Wells Fargo, increasing the stock's price target to $88 following the bank's robust fourth-quarter financial results. Citi, however, reiterated its Neutral rating on Wells Fargo shares with a steady price target of $82, despite lower fee income as trading revenue was weaker than anticipated.
Goldman Sachs reaffirmed its Buy rating on Wells Fargo shares, maintaining a price target of $77, in response to the bank's fourth-quarter earnings per share (EPS) that surpassed estimates.
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