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Investing.com - Keefe, Bruyette & Woods lowered its price target on Wells Fargo & Company (NYSE:WFC) shares to $98 from $101 while maintaining a Market Perform stock rating.
The firm cited the bank’s first-quarter 2026 net interest income miss and an unchanged full-year 2026 guidance despite higher-for-longer rate expectations.
Wells Fargo shares fell 5.7% following the quarterly results, trading at $81.04 with a P/E ratio of 12.73.
The bank’s stock has declined 12% year-to-date. Keefe, Bruyette & Woods said lower estimates following the first quarter should help reduce risk for the stock.
The firm noted Wells Fargo is working toward its 17% to 18% return on tangible common equity target.
In other recent news, Wells Fargo & Company reported its first-quarter 2026 earnings, which showed mixed results. The company exceeded earnings per share (EPS) expectations with an EPS of $1.60, slightly above the anticipated $1.58. However, revenue figures did not meet forecasts, coming in at $21.45 billion compared to the expected $21.76 billion. Barclays recently adjusted its price target for Wells Fargo, reducing it from $113 to $108, while maintaining an Overweight rating. The adjustment was attributed to margin pressure, as net interest income and margins fell short of expectations despite growth in loans and deposits. Barclays highlighted that deposit costs decreased less than those of Wells Fargo’s peers. These developments indicate ongoing challenges for the company in balancing revenue growth with cost management.
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