On Thursday, Truist Securities adjusted its outlook on Wells Fargo (NYSE:WFC) & Co. shares (NYSE: WFC), raising the price target from $82.00 to $85.00 while maintaining a Buy rating on the stock. The revision comes after an analysis of the bank’s fourth-quarter 2024 performance and guidance provided by management.
Truist Securities’ analysts have increased their estimated earnings per share (EPS) for Wells Fargo for the year 2025 by 4% to $6.10, an uptick of $0.25, and for the year 2026 by 3% to $7.05, adding $0.20. The upward adjustments are primarily attributed to anticipated growth in net interest income (NII), although this is somewhat tempered by expectations of higher noninterest expenses than previously estimated. With a current P/E ratio of 13.26x and trading near its 52-week high of $78.13, InvestingPro analysis suggests the stock remains undervalued relative to its Fair Value.
The analysts project a 2% year-over-year increase in NII for 2025, reaching approximately $49 billion, aligning with the midpoint of the bank’s own forecast range of roughly 1-3% growth. Despite this, the projected noninterest expenses for 2025 are set at about $54.4 billion, slightly above the guidance of around $54.2 billion provided by Wells Fargo’s management.
The new price target of $85 reflects an increase of $3 and is based on approximately 12.1 times the estimated EPS for 2026 and roughly 1.9 times the projected tangible book value (TBV) at the end of 2025. The analysts’ decision to raise the price target is rooted in the higher projected earnings, signaling a positive outlook for Wells Fargo’s financial performance in the coming years.
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