Wells Fargo (WFC) Stock Forecast & Price Target

Wells Fargo is attractive because it has emerged from more than seven years of asset-growth restraint with the Fed removing the cap in early March, leaving a well-capitalized bank with a 10.0% CET1 ratio and a $2.25 trillion asset base ready to expand. Its 3Q26 results showed durable fundamentals: net income of $6.0 billion, EPS of $1.87, revenue of $21.9 billion, and ROTCE of 16.3%, supported by broad-based growth across all four segments and an efficiency ratio that improved to 63%. The company also has excess capital, strong credit quality, and a compelling capital-return story, having repurchased $2.5 billion of stock, paid a $0.50 quarterly dividend, and increased client assets to $2.74 trillion, while targeting 17%-18% ROTCE over time.

Wells Fargo is facing a weak fundamental setup because its net interest margin was flat sequentially at 2.43% but fell 18 bps year over year to 2.43%, reflecting higher deposit costs and the drag from lower rates on floating-rate assets. Noninterest income also deteriorated to $9.35 billion from $10.31 billion in the prior quarter, while the Corporate and Investment Banking segment posted a $526 million net loss as trading, banking, and venture-capital-related gains softened. Capital metrics are also trending lower, with CET1 at 10.0% and SLR at 5.7%, down from 10.3% and 5.8% sequentially, suggesting buybacks, balance-sheet growth, and a harder macro backdrop are pressuring flexibility.