Wells Fargo price target raised to $110 from $101 at CFRA on asset cap removal

Investing.com - CFRA raised its price target on Wells Fargo (NYSE:WFC) to $110.00 from $101.00 on Wednesday, while maintaining a Buy rating on the stock. The bank’s shares currently trade at $84.56, with a P/E ratio of 13x. According to InvestingPro data, Wells Fargo is currently undervalued based on its Fair Value analysis.

The research firm cited the recent removal of the bank’s asset cap as a key factor in its decision to increase the target price. CFRA’s new target represents 16.0 times its 2026 earnings per share estimate of $6.87, slightly above Wells Fargo’s 10-year historic average of 15.1 times. The stock has shown strong momentum, gaining over 32% in the past six months and trading near its 52-week high of $86.66.

CFRA also raised its 2025 EPS projection by $0.28 to $6.20 and increased its 2026 estimate by $0.08 to $6.87, following what it described as strong performance across key metrics in the latest quarter.

The firm highlighted Wells Fargo’s accelerating loan growth, record investment banking revenues, and improving credit quality as positive factors. Management’s indication that its new 17%-18% return on tangible common equity target is achievable in the medium term further supported the optimistic outlook. InvestingPro analysis shows the bank maintains a "GOOD" overall financial health score, with particularly strong marks in price momentum and profitability metrics. Discover 10+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report.

CFRA noted that Wells Fargo has significant growth potential in underpenetrated areas like investment banking and credit cards, while sustained share buybacks could reduce the share count by approximately 6% over the next year.

In other recent news, Wells Fargo has reported impressive third-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share of $1.66, exceeding the forecasted $1.55. Additionally, Wells Fargo’s revenue reached $21.43 billion, beating the expected $21.14 billion. These strong financial results have caught the attention of analysts and investors alike. In response to the company’s performance, BofA Securities raised its price target for Wells Fargo from $92 to $100 while maintaining a Buy rating. The firm highlighted Wells Fargo’s unique drivers of improved profitability and superior earnings growth as reasons for the upgrade. BofA Securities also noted that the bank offers one of the best risk/reward profiles among large-cap banks. These developments reflect Wells Fargo’s ongoing financial strength and strategic positioning in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.