Wells Fargo & Company (NYSE:WFC) plans to release third quarter earnings before the opening bell on Tuesday, October 13.
Analysts expect the San Francisco-based bank to report quarterly earnings of $1.85 per share, up from $1.66 per share a year ago. The consensus estimate for WFC’s quarterly revenue is $22.34 billion. It reported $21.44 billion last year, according to Benzinga Pro.
Morgan Stanley analyst Manan Gosalia upgraded the stock from Equal-Weight to Overweight and maintained the price forecast at $102.
The analyst expects normalized balance-sheet growth to reduce funding pressure, stabilize net interest margin and improve confidence in the bank’s path toward higher returns.
Stronger fees from existing client relationships, improved Consumer returns, efficiency gains and capital deployment are expected to support an 18% ROTCE in 2028.
The analyst sees further upside from Investment Banking and markets, where stronger revenue from existing client relationships could help close the fee gap with peers, potentially more than doubling investment banking fees over time.
Positive operating leverage of more than 2% annually from 2026-28 is expected to come from net interest income and fee growth alongside efficiency gains, reducing the expense ratio from 65% to 60%, adds the analyst.
Gosalia writes that Basel Endgame benefits could also support buybacks about 30% above consensus in 2027/28, adding 21 cents to EPS and providing 70 basis points of ROTCE upside.
WFC Stock Price Activity: Wells Fargo shares were up 1.01% at $81.26 at the time of publication Monday.
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