These Analysts Raise Their Forecasts On Wells Fargo After Stronger-Than-Expected Q3 Earnings

Core Insights - Wells Fargo & Company reported better-than-expected results for Q3 2025, with a net interest income of $11.95 billion, reflecting a 2% year-over-year increase [1] - The bank's earnings per share (EPS) were $1.66, surpassing the consensus estimate of $1.54, while adjusted EPS was $1.73, also beating the analyst consensus [2] - Revenue for the quarter increased by 5% year-over-year to $21.44 billion, exceeding analysts' expectations of $21.15 billion [2] Economic Context - Despite some economic uncertainty, the U.S. economy remains resilient, with strong financial health among clients and customers [3] - There has been an increase in spending on debit and credit cards, along with significant growth in auto loan originations compared to the previous year [3] Future Guidance - For fiscal year 2025, Wells Fargo expects net interest income to align with the 2024 figure of $47.7 billion, maintaining prior guidance [4] - The company anticipates net interest income for Q4 2025 to be approximately between $12.4 billion and $12.5 billion [4] Stock Performance and Analyst Ratings - Following the earnings announcement, Wells Fargo shares rose by 1.9% to $86.19 [4] - Analysts have adjusted their price targets for Wells Fargo, with various ratings maintained and price targets raised by several firms, including: - Keefe, Bruyette & Woods: Market Perform, target raised from $85 to $92 [6] - Morgan Stanley: Equal-Weight, target raised from $95 to $97 [6] - TD Cowen: Hold, target raised from $90 to $93 [6] - Barclays: Overweight, target raised from $87 to $94 [6] - B of A Securities: Buy, target raised from $92 to $100 [6] - Truist Securities: Buy, target raised from $88 to $90 [6]