RBC Highlights Wells Fargo (WFC) Growth Strategy and Capital Management Plans

Core Viewpoint - Wells Fargo & Company is undergoing a transformation from a defensive to an offensive strategy following regulatory limitations, with significant growth in assets and a reaffirmed positive outlook from RBC Capital [1]. Group 1: Company Performance - Wells Fargo's assets exceeded $2.1 trillion in Q4 2025, marking a significant achievement after over seven years of growth constraints due to regulatory directives [1]. - The medium-term return on tangible common equity (ROTCE) target for Wells Fargo is set at 17-18%, indicating management's commitment to growth while managing capital ratios effectively [2]. Group 2: Analyst Ratings and Price Targets - RBC Capital has maintained an Outperform rating for Wells Fargo with a price target of $100, reflecting confidence in the bank's strategic transformation [1]. - Evercore ISI has reduced its price target for Wells Fargo from $110 to $105 while still maintaining an Outperform rating, alongside a slight decrease in EPS expectations for 2026 and 2027 to $7.17 and $8.32, respectively [2].