2024-07-04 08:20:17 ET
Summary
- I see Wells Fargo's strong commercial momentum to continue and project that future upside is underpinned by strategic investments in growth areas, improved efficiency, and a competitive deposit franchise, amongst others.
- The bank's robust capital position and attractive valuation support the argument for shareholder rewards, likely in excess of a 10% yield this year.
- I expect that a potential lifting of regulatory restrictions in 2024 could unlock a strong catalyst for share price upside, as investors reprice WFC's growth outlook.
Wells Fargo ( WFC ) has been experiencing a strong commercial momentum lately and is well-positioned for additional upside due to strategic shifts in its business operations, significant investments in growth areas, and an ongoing transformation under the leadership of CEO Charlie Scharf. As WFC continues to execute on strategic priorities, including (1) expansion and diversification of revenue, (2) pushing operational efficiency and (3) proving regulatory compliance, the bank is expected to generate about $23 billion of pre-tax income in 2024, and $25 billion in 2025....
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Wells Fargo: Shareholder Distributions And Regulatory Relief Could Drive Further Upside