Analyst Betsy Graseck from Morgan Stanley maintained a Buy rating on Wells Fargo (WFC – Research Report) and keeping the price target at $88.00.
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Betsy Graseck’s rating is based on Wells Fargo’s significant progress in overcoming regulatory challenges, as evidenced by the termination of two longstanding consent orders by the Federal Reserve. This marks an important step in Wells Fargo’s ongoing efforts to address legacy issues, which have been a barrier to its growth potential. The lifting of these orders is seen as a recognition by regulators of Wells Fargo’s fulfilled obligations and is expected to contribute positively to the stock’s performance.
Furthermore, the anticipation of future regulatory relief, particularly the potential removal of the asset cap, is a key factor in the optimistic outlook. Wells Fargo’s strategic focus on reducing operating losses by investing in risk and control infrastructure highlights its commitment to moving past historical issues. This positions the company to potentially adopt a more growth-oriented strategy, enhancing its long-term financial prospects.
In another report released on January 20, Phillip Securities also maintained a Buy rating on the stock with a $85.00 price target.