JPMorgan gets price target increase from Wells Fargo, indicating 20% upside potential

JPMorgan gets price target increase from Wells Fargo, indicating 20% upside potential

JPMorgan has increased its price target for Wells Fargo (WFC) stock, signaling a significant 20% upside potential. The move follows the Federal Reserve's recent decision to lift the bank's asset cap, which had been a constraint on its growth and operations. The analysts at JPMorgan maintain a Neutral rating on Wells Fargo's stock, with a new price target of $73.50 [1].

The asset cap removal is expected to positively impact Wells Fargo's earnings profile, particularly in trading and investment banking. The bank has shown growth in its loan portfolio, particularly in commercial and industrial loans to non-bank financial entities. Additionally, trading assets have grown by 16% in 2024, with repo financing nearly doubling and corporate and investment banking trading revenues surging by almost 50% since 2021 [1].

The Federal Reserve's decision to lift the asset cap has led to a series of analyst updates. Barclays maintains an Overweight rating, citing potential for increased earnings per share (EPS) through expanded commercial deposits and loans. Morgan Stanley has raised its price target to $87, highlighting expectations of accelerated loan and deposit growth. Keefe, Bruyette & Woods increased their price target to $80, acknowledging the significance of the asset cap removal but maintaining a Market Perform rating due to a low-growth environment [1].

Goldman Sachs has reaffirmed its Buy rating, projecting a 14-19% increase in earnings per share by 2026, with a return on tangible common equity (ROTCE) ranging from 16.5% to 17.3% [1]. Other analysts have also expressed optimism regarding Wells Fargo's strategic initiatives and financial outlook.

The recent developments reflect a broader optimism among analysts regarding Wells Fargo's growth prospects. The bank's ability to expand its balance sheet and earnings, driven by the removal of the asset cap, could lead to increased profitability and growth in various business segments.

References:
[1] https://www.investing.com/news/analyst-ratings/jpmorgan-maintains-neutral-rating-on-wells-fargo-stock-after-asset-cap-lift-93CH-4080468
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/06/45773642/wells-fargo-to-rally-around-19-here-are-10-top-analyst-forecasts-for-wednesday
[3] https://www.forbes.com/sites/greatspeculations/2025/06/10/wells-fargo-just-got-unshackled-what-next/