Key Stats for Wells Fargo Stock
- Price change for Wells Fargo stock in the last 6 months: -2%
- $WFC Stock Price as of Oct. 2: $80
- 52-Week High: $98
- $WFC Stock Price Target: $100
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What Happened?
Wells Fargo (WFC) shares are rising after Morgan Stanley upgraded the stock from Equal-Weight to Overweight. It set a $102 price target and named the bank a Top Pick.
Morgan Stanley said the headwinds from the removal of the asset cap are starting to ease. That should help the bank balance growth and profit better.
The firm also expects net interest margin to stabilize and then improve.
The upgrade stands out. Wells Fargo had been the worst-performing stock in Morgan Stanley’s coverage this year. That makes this a real shift in view, not a routine tweak.
Other analysts are mostly positive.
- Goldman Sachs kept its Buy rating.
- Truist raised its target to $95 earlier this week.
- JPMorgan kept its Neutral rating and trimmed its target to $91.50.
Jobs data also helped. The US added just 29,000 jobs in September. That was well below forecasts. Unemployment rose to 4.2%.
The report eased fears of more Fed tightening. Yields fell, and bank stocks got a lift.
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What the Market Is Telling Us About Wells Fargo Stock
Investors are rethinking Wells Fargo stock. The shares are still well below the 52-week high of $97.76. That leaves room for a rebound if the story continues to improve.
The July earnings call supports Morgan Stanley’s view on margins. Management said it expects some margin pressure in Q3.
It then expects the margin to stabilize in Q4. The pressure came from growth in deposits and in the Markets business.
The bank’s results were solid. Earnings per share rose 25% to $2. Revenue grew 9%. Average loans rose 12%, and average deposits rose 10%. Return on tangible common equity reached 17.7%. The bank’s target is 17% to 18%.
Credit looks healthy. Net loan charge-offs fell to 34 basis points of average loans. The bank also returned capital, buying back $3 billion of stock last quarter.
Still, weak jobs data cuts both ways. A slowing economy can pressure loan demand and credit over time. Management also warned that strong markets do not last forever.
For investors, Q3 earnings are next. Watch the margin trend and loan growth. Those will show if Wells Fargo stock deserves the upgrade.
If margins stabilize as expected, Wells Fargo stock could keep gaining.
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So what is Wells Fargo stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
