Bank Of America Predicts Positive Stock Re-Rating For Wells Fargo After Asset Cap Removal
Bank Of America Predicts Positive Stock Re-Rating For Wells Fargo After Asset Cap Removal
The management is confident that each of their four business segments can achieve top-tier returns, targeting a ROTCE between 16% and 19%, adds the analyst.Bank Of America Securities analyst Ebrahim H. Poonawala raised the price target on Wells Fargo & Company (NYSE:WFC) from $75 to $84 while reiterating a Buy rating.
美国银行证券分析师Ebrahim H. Poonawala将富国银行（NYSE:WFC）的目标价格从75美元上调至84美元，并重申买入评级。
A meeting with CEO Charlie Scharf and CFO Mike Santomassimo strengthened analysts' belief that the bank is on track to achieve high-teens return on average tangible common equity (ROTCE).
与CEO Charlie Scharf和CFO Mike Santomassimo的会议加强了分析师们对该银行能够实现高十几位数普通股权平均回报率（ROTCE）的信心。
Poonawala says that, in the discussion, it was clear that management is now prioritizing franchise efficiency, focusing on areas like cost control, client wallet share, and market share expansion, after dedicating a significant portion of their attention to regulatory issues in recent years.
Poonawala表示，在讨论中，很明显管理层现在正在优先考虑特许经营的效率，并专注于诸如成本控制、客户钱包份额和市场份额扩张等领域，在近年来已经将注意力的大部分都放在监管问题上之后。
The management is confident that each of their four business segments can achieve top-tier returns, targeting a ROTCE between 16% and 19%, adds the analyst.
管理层相信他们的四个业务领域每个都能够实现顶尖回报，分析师补充道，他们的目标是ROTCE在16%至19%之间。
Additionally, management emphasized substantial growth prospects throughout the franchise, not just in capital markets, wealth management, and cards, writes the analyst.
此外，管理层强调整个特许经营的巨大增长前景，不仅仅在资本市场、财富管理和信用卡领域，分析师写道。
Despite the stock's strong performance so far this quarter, the analyst believes the removal of the 2018 asset cap will serve as a catalyst, attracting a new group of investors and potentially driving a re-rating of the stock's valuation.
尽管该股票本季度表现强劲，但分析师认为，2018年限制资产的解除将作为催化剂，吸引一批新投资者，并有可能推动股票估值的重新评估。
Poonawala anticipates the asset cap removal to occur in early 2025, following the significant efforts made by management to address regulatory issues, most notably the earlier removal of the 2016 OCC consent order.
Poonawala预计资产限制将在2025年初解除，此前管理层为解决监管问题所做的重要努力，尤其是2016年美国货币监理官办公室同意书的早期解除。
Overall, the analyst raised the FY25/26 EPS estimates by 4% to $5.64 and $7, respectively, implying a ROTCE of 15%+ and 16%+ by 2026.
总体而言，分析师将FY25/26每股收益预估分别上调了4%，至5.64美元和7美元，暗示到2026年ROTCE将达到15%以上和16%以上。
The analyst expect more upside potential, as consensus overestimates credit costs and underestimates fee growth.
分析师预计上行潜力更大，因为共识高估了信贷成本，低估了费用增长。
Investors can gain access to the stock via First Trust Nasdaq Bank ETF (NASDAQ:FTXO) and Invesco KBW Bank ETF (NASDAQ:KBWB).
投资者可以通过First Trust纳斯达克银行ETF（NASDAQ：FTXO）和Invesco KBW银行ETF（NASDAQ：KBWB）获得该股票。
Price Action: WFC shares are up 4.28% at $73.04 at the last check Monday.
股价表现：WFC股票在上周一最后一次检查时上涨了4.28%，报73.04美元。
Read Next:
阅读下一篇：
- Trump Trade Sparks Biggest Financial Stock Inflows In 2 Years
- 特朗普的交易引发了两年来最大规模的金融股资金流入
Image: Shutterstock
图片：shutterstock
