RBC upgrades Wells Fargo to 'outperform' on valuation

RBC Capital Markets upgrades Wall Street giant Wells Fargo WFC.N to "outperform" from "sector perform"

Says recent stock weakness gives investors a good entry point to buy WFC's stock

Brokerage expects WFC to execute on its growth plan to achieve its profitability target once the asset cap is lifted, which should result in a higher valuation over time

Says optimization of expense levels is another driver of profitability for WFC, adding that costs could shrink further from current levels once regulatory issues are resolved

Sixteen of 23 brokerages rate the stock "buy" or higher and seven "hold"; median PT is $86, per data compiled by LSEG

WFC stock down 2% YTD after 42.7% jump in 2024