Wells Fargo Downgrades Truist Financial, Sets New Price Target of $47.00

Wells Fargo downgraded Truist Financial (TFC) to "Equal-Weight" from "Overweight," setting a new price target of $47.00. This follows a series of rating actions on the company in recent months, including upgrades from Morgan Stanley, Raymond James, and Citigroup. The average target price for TFC is $48.89, with a high estimate of $55.00 and a low estimate of $45.95, implying an upside of 11.41% from the current price.

Title: Wells Fargo Downgrades Truist Financial to "Equal-Weight" Amid Mixed Analyst Ratings

Wells Fargo has downgraded Truist Financial (TFC) from "Overweight" to "Equal-Weight," setting a new price target of $47.00. This move follows a series of rating changes for the company, including upgrades from Morgan Stanley, Raymond James, and Citigroup. The average target price for TFC remains at $48.89, with a high estimate of $55.00 and a low estimate of $45.95, indicating an upside potential of 11.41% from the current price [1].

The downgrade by Wells Fargo comes after the company's new five-year strategic plan was released. The plan focuses on expanding its branch network and enhancing digital capabilities, with the goal of attracting mass affluent clients. Truist plans to open 100 new branches and renovate over 300 existing ones in major cities across the United States [2]. This strategy is aimed at providing personalized financial planning and AI-driven insights to clients, with modern layouts and integrated technology in the new branches.

Despite the downgrade, several analysts have recently upgraded their ratings for TFC. Citigroup, for instance, raised its rating from "neutral" to "buy" and increased its price target from $44.00 to $55.00. Additionally, a number of hedge funds have increased their stakes in TFC, with Vestmark Advisory Solutions Inc. increasing its holding by 63.7% in the first quarter [3].

Truist Financial's stock has seen mixed performance in recent months. It opened at $44.50 on Friday and has a fifty-two week low of $33.56 and a fifty-two week high of $49.06. The company has a market capitalization of $57.38 billion and a price-to-earnings ratio of 12.13. The stock has a fifty day moving average of $43.31 and a two-hundred day moving average of $41.87 [3].

The company's recent earnings report showed a quarterly EPS of $0.91, missing analysts' consensus estimates of $0.93. Revenue for the quarter was $5.04 billion, compared to analysts' expectations of $5.04 billion. The company's return on equity was 8.69% and its net margin was 16.82% [3].

In conclusion, the mixed analyst ratings and Wells Fargo's downgrade highlight the varying opinions on Truist Financial's growth potential. The company's strategic expansion plans and recent upgrades from some analysts suggest potential upside, but the market's reaction to Wells Fargo's downgrade will be key to determining the stock's future performance.

References
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UD0YY:0-truist-financial-falls-after-wells-fargo-downgrades-rating/
[2] https://www.marketbeat.com/instant-alerts/filing-truist-financial-corporation-nysetfc-shares-acquired-by-vestmark-advisory-solutions-inc-2025-08-17/
[3] https://www.ainvest.com/news/truist-financial-expands-branch-network-100-locations-analysts-10-upside-potential-2508/