WFC - Wells Fargo: The Removal Of The Asset-Cap In 2025 May Unlock The Necessary Optimism

2024-04-15 04:34:32 ET

Summary

• Wells Fargo surpassed earnings estimates in Q4 2023 and Q1 2024, driving a 14.94% stock price increase.
• Despite regulatory constraints, Wells Fargo remains undervalued, with a fair price of $71.49 and a future projection of $123.41, offering 19.5% annual returns through 2029.
• While lagging in deposit coverage compared to JPMorgan and Bank of America, Wells Fargo remains solvent and capable of meeting its debt obligations.

Thesis

In my previous article covering Wells Fargo & Company ( WFC ), I assigned it a buy rating citing that the estimated fair price stood at around $54.73, which was a 10.6% upside from the then stock price of $49.50, and that the estimated fair price for 2029 stood at around $94.86, which translated into annual returns of 18.3% throughout the projected period 2023-2028....

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