Wells Fargo Downgraded to Market Perform by Raymond James

Wells Fargo's rating has been downgraded from 'Strong Buy' to 'Market Perform' by Raymond James, indicating a more cautious outlook on the stock. The average target price for Wells Fargo is $82.84, with a high estimate of $93.00 and a low estimate of $58.92. The average brokerage recommendation is currently 2.1, indicating "Outperform" status. The estimated GF Value for Wells Fargo in one year is $60.49, suggesting a downside of 27.1% from the current price.

Raymond James has downgraded Wells Fargo from a 'Strong Buy' to a 'Market Perform' rating, signaling a more cautious outlook on the stock. The brokerage firm, in its recent report, cited that Wells Fargo's stock has rallied significantly since March, with a more than 15% increase in share price following the Federal Reserve's decision to lift the bank's long-standing asset cap. However, analysts at Raymond James believe that the stock's recent gains have priced in much of the expected upside from improving profitability [1].

Wells Fargo shares have closed just shy of Raymond James' $84 target and are currently trading at a premium to most peers. The firm's multiple of 12.4 times 2026 earnings is above the peer group average of 11 and trails only JPMorgan. Despite the downgrade, Raymond James remains constructive on Wells Fargo's long-term fundamentals, including revenue growth opportunities and cost improvements. The firm expects investor attention to rotate toward cheaper regional banks as megacap lenders like JPMorgan, Bank of America, and Citi trade near 52-week highs [1].

The average target price for Wells Fargo is $82.84, with a high estimate of $93.00 and a low estimate of $58.92. The average brokerage recommendation is currently 2.1, indicating an 'Outperform' status. The estimated GF Value for Wells Fargo in one year is $60.49, suggesting a downside of 27.1% from the current price [1].

Raymond James has also upgraded U.S. Bancorp to a 'Strong Buy' rating, citing an expected shift in operating leverage after years of underperformance. The firm projects more than 200 basis points of positive operating leverage in 2025 and sees further improvement in 2026. U.S. Bancorp's medium-term financial targets, including a return on assets of 1.15–1.35% and a return on tangible common equity in the high teens, are considered realistic and could drive renewed investor interest [1].

References:
[1] https://finance.yahoo.com/news/wells-fargo-hit-downgrade-u-184125378.html