Citi analyst Keith Horowitz has maintained their neutral stance on WFC stock, giving a Hold rating on April 2.
Keith Horowitz has given his Hold rating due to a combination of factors surrounding Wells Fargo’s recent performance and future outlook. Despite a solid quarter, the stock’s reaction was less favorable than anticipated, as the management’s guidance on net interest income (NII) was at the lower end of expectations. This softer-than-expected NII result was somewhat offset by strong core fees and controlled expenses, aligning with core pre-provision net revenue (PPNR) estimates.
Horowitz acknowledges Wells Fargo’s strong positioning in terms of credit and capital, which supports continued share buybacks. However, the revised earnings estimates for the coming years show slight decreases, reflecting a cautious stance. While the bank is on track to meet its return on tangible common equity (ROTCE) targets, the overall risk/reward profile remains neutral, justifying the Hold rating.
In another report released on April 2, J.P. Morgan also maintained a Hold rating on the stock with a $73.50 price target.