Wells Fargo initiated with a Buy at Truist

Truist analyst John McDonald initiated coverage of Wells Fargo (WFC) with a Buy rating and $82 price target as part of a broader research note launching coverage of U.S. Large-Cap banks. Big banks are positioned to leverage embedded offense, cyclical recovery and capital flexibility to drive organic franchise expansion, double digit EPS growth, and attractive ROTCE – return on tangible common equity – over FY25 and FY26, the analyst tells investors in a research note. Wells Fargo is also on a path to better leveraging the breadth of its customer base, distribution network and scale into higher returns and inflecting towards franchise growth after years of stagnation, and the company may now be in the later innings of an 8-year journey to improve its risk/controls to the satisfaction of regulators, the firm adds.