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.
美國銀行證券分析師易卜拉欣·普納瓦拉將富國銀行（紐約證券交易所代碼：WFC）的目標股價從75美元上調至84美元，同時重申了買入評級。
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).
與首席執行官查理·沙爾夫和首席財務官邁克·桑托馬西莫的會晤增強了分析師的信念，即該銀行有望實現十幾歲的平均有形普通股回報率（ROTCE）。
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說，在討論中，很明顯，管理層在近年來將很大一部分注意力集中在監管問題上，現在正在優先考慮特許經營效率，將重點放在成本控制、客戶錢包份額和市場份額擴大等領域。
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.
分析師補充說，管理層相信，他們的四個業務部門都能實現一流的回報，目標回報率在16％至19％之間。
Additionally, management emphasized substantial growth prospects throughout the franchise, not just in capital markets, wealth management, and cards, writes the analyst.
此外，分析師寫道，管理層強調了整個特許經營業務的強勁增長前景，而不僅僅是資本市場、财富管理和信用卡領域。
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.
儘管該股本季度迄今表現強勁，但該分析師認爲，取消2018年資產上限將起到催化劑的作用，吸引新的投資者群體，並有可能推動該股估值的重新評級。
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預計，資產上限將在2025年初取消，此前管理層爲解決監管問題做出了重大努力，最值得注意的是早些時候取消了2016年OCC同意令。
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.
總體而言，該分析師將25/26財年的每股收益預期分別提高了4％，至5.64美元和7美元，這意味着到2026年，每股收益將達到15％以上和16％以上。
The analyst expect more upside potential, as consensus overestimates credit costs and underestimates fee growth.
由於共識高估了信貸成本並低估了費用增長，分析師預計會有更大的上行潛力。
Investors can gain access to the stock via First Trust Nasdaq Bank ETF (NASDAQ:FTXO) and Invesco KBW Bank ETF (NASDAQ:KBWB).
投資者可以通過第一信託納斯達克銀行ETF（納斯達克股票代碼：FTXO）和景順KBW銀行ETF（納斯達克股票代碼：KBWB）獲得該股票。
Price Action: WFC shares are up 4.28% at $73.04 at the last check Monday.
價格走勢：在週一的最後一次檢查中，WFC股價上漲4.28％，至73.04美元。
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Image: Shutterstock
圖片：Shutterstock
