BUZZ-Street View: Wells Fargo is competing on offense

Wells Fargo's WFC.N profit beat expectations in the fourth quarter, powered by a rebound in dealmaking activity and forecast it would earn more from interest payments this year

Median PT of 25 brokerages covering the stock is $82 - LSEG

AN ASSET CAP LIFT COULD BE THE NEXT BIG THING

Piper Sandler ("neutral," PT: $77) says, "the story no longer seems about correcting past mistakes as much as it does about growing and competing on offense"
The next big thing for WFC could be an asset cap lift under a friendlier regulatory backdrop, Piper Sandler adds

Morgan Stanley ("overweight," PT: $88) says WFC is modestly asset sensitive, so higher for longer interest rates is a positive
Adds that the asset cap removal remains a catalyst

Barclays ("overweight," PT: $92) views WFC's 2025 Net Interest Income (NII) outlook as better than expected and that it stands to benefit a lot from higher interest rates
Adds that the eventual lifting of regulatory restrictions also represents a potential catalyst

J.P.Morgan ("neutral," PT: $73) says, "key is when the asset cap will be lifted", as it can drive sharp growth in wholesale deposits and funding with further growth in trading assets, investment securities, and liquidity
JPM also expects trading revenues to grow further as investment banking continues to grow sharply

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))