Wells Fargo is likely to continue to improve its position as it continues to emerge from the recently lifted total asset limit, Jefferies said. The investment bank initiated research coverage on Wells Fargo with a buy rating and set a price target of $100, suggesting an upside of about 25% from Wednesday’s closing price. Wells was named by Jefferies as the top of four money center or super regional banks that Jefferies initiated buy ratings on (the others being Bank of America, Citigroup, and PNC Financial). “WFC is our top choice as the removal of the regulatory asset cap in June 2025 should foster above-average growth,” Jefferies analyst David Chiaverini said in a note to clients on Thursday. Last June, the Federal Reserve lifted a seven-year cap on Wells Fargo’s assets, allowing the bank to pursue unhindered growth. The central bank initially imposed restrictions citing governance and management issues at Wells, including the opening of millions of unauthorized accounts for employees to meet performance quotas. “Wells is in the early stages of a multi-year recovery in (return on tangible common equity) following the June 2025 removal of the asset cap and the expiration of key consent orders,” Jeffries wrote. “We believe we can compete on an equal footing with our peers and support balance sheet growth, cost reductions and an improved fee trajectory.” Jefferies’ bullish stance is consistent with Wall Street consensus, with 17 of the 27 analysts covering Wells Fargo giving the stock a buy or strong buy rating. The bank’s stock price has fallen nearly 16% in the past three months.
