Wells Fargo gets a bold upgrade ahead of earnings. Why the stock can play catch-up
Wells Fargo received a bold upgrade just over a week before the bank reports earnings next Tuesday.
TL;DR
- Morgan Stanley upgraded Wells Fargo to a buy rating and named it a top pick.
- The firm expects improved profitability for Wells Fargo by 2027.
- The removal of the Federal Reserve's asset cap in June is seen as a key factor enabling balance sheet growth.
- Morgan Stanley anticipates stabilization and expansion of Wells Fargo's net interest margin (NIM).
- Growth in investment banking fees, particularly in mergers and acquisitions, is another expected driver of profitability.
- The stock is seen as undervalued, with analysts predicting significant upside potential.