Street View: Wells Fargo on track for strong growth after Fed removes asset cap

Shares of fourth-largest U.S. bank Wells Fargo WFC.N rise 0.7% to $76.16, briefly hitting a three-month high, after U.S. Federal Reserve lifts longstanding $1.95 trillion cap on its assets

Of 24 analysts that cover stock, 17 rate it "buy" or higher, rest "hold"; median PT is $86 - data compiled by LSEG

SKY'S THE LIMIT NOW?

Deutsche Bank ("buy," PT: $90) sees lifting of cap, combined with significant investments in many areas, to drive 20% EPS growth per year in 2026-2028

Barclays ("overweight," PT: $87) expects removal of cap to give WFC ability to pivot to more of growth mindset and redirect management resources, but still expect growth in controlled manner and within same risk tolerance it has had

Morgan Stanley ("overweight," PT: $87) sees release spurring multi-year period of growth

BofA Global Research ("buy," PT: $90) sees potential for new pool of investors who had been fatigued by regulatory overhang to step-in given WFC's idiosyncratic growth story

HSBC ("hold," PT: $71) looks favorably on this news, but notes that markets have been increasingly pricing it in, possibly limiting near-term upside