This Banking Giant Just Got a $90 Price Target Upgrade

Core Viewpoint - The lifting of capital requirements for Wells Fargo has positioned the bank for significant earnings growth, particularly in earnings per share (EPS), which is expected to rise by nearly 17% in the near future [3][7][11]. Group 1: Capital Requirements and Earnings Potential - The capital requirement set by regulators directly impacts a bank's ability to lend and generate income [2][3]. - Wells Fargo's capital requirement was lifted from $1.95 trillion, allowing the bank to expand its lending activities and increase interest income [3][11]. - Analysts expect Wells Fargo's EPS to increase from $1.39 to $1.62 by the fourth quarter of 2025, indicating strong growth potential [7][11]. Group 2: Stock Performance and Market Sentiment - Wells Fargo's stock has risen by 3.6% over the past month and is trading at 92% of its 52-week high, suggesting a bullish market sentiment [4][5]. - The stock is currently priced at $76.10, with a price target of $77.48, indicating a potential upside of 1.97% [2][9]. - Bank of America analyst Erika Najarian has a Buy rating on Wells Fargo, with a price target of up to $90 per share, suggesting an 18% potential rally [8][9]. Group 3: Comparison with Peers - Wells Fargo trades at a forward P/E multiple of 11.5x, which is a premium compared to peers like Bank of America (9.0x) and Citigroup (8.5x), indicating market confidence in Wells Fargo's future earnings [10][11]. - The market's willingness to pay a premium for Wells Fargo's stock reflects optimism about its growth prospects following regulatory changes [11].