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Ebrahim H. Poonawala將富國銀行（NYSE:WFC）的目標價格從75美元上調至84美元，並重申買入評級。
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CEO Charlie Scharf和CFO Mike Santomassimo的會議加強了分析師們對該銀行能夠實現高十幾位數普通股權平均回報率（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，在討論中，很明顯管理層現在正在優先考慮特許經營的效率，並專注於諸如成本控制、客戶錢包份額和市場份額擴張等領域，在近年來已經將注意力的大部分都放在監管問題上之後。
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.
管理層相信他們的四個業務領域每個都能夠實現頂尖回報，分析師補充道，他們的目標是ROTCE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，管理層強調整個特許經營的巨大增長前景，不僅僅在資本市場、财富管理和信用卡領域，分析師寫道。
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.
儘管該股票本季度表現強勁，但分析師認爲，2018年限制資產的解除將作爲催化劑，吸引一批新投資者，並有可能推動股票估值的重新評估。
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預計資產限制將在2025年初解除，此前管理層爲解決監管問題所做的重要努力，尤其是2016年美國貨幣監理官辦公室同意書的早期解除。
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.
總體而言，分析師將FY25/26每股收益預估分別上調了4%，至5.64美元和7美元，暗示到2026年ROTCE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.
分析師預計上行潛力更大，因爲共識高估了信貸成本，低估了費用增長。
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First Trust納斯達克銀行ETF（NASDAQ：FTXO）和Invesco KBW銀行ETF（NASDAQ：KBWB）獲得該股票。
Price Action: WFC shares are up 4.28% at $73.04 at the last check Monday.
股價表現：WFC股票在上週一最後一次檢查時上漲了4.28%，報73.04美元。
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