Morgan Stanley has adjusted its price target for Wells Fargo (WFC, Financial), reducing it from $80 to $77, while maintaining an Overweight rating on the bank's stock. This decision follows the release of Wells Fargo's first-quarter results.
Wells Fargo has made significant progress this year, with five consent orders being removed and only three remaining. This advancement is seen as a positive step toward the eventual removal of the asset cap, which is anticipated to occur in the fourth quarter according to analysts.
Once the asset cap is lifted, Morgan Stanley anticipates that Wells Fargo will benefit from improved operating leverage, potentially driving earnings growth. This optimistic outlook underpins the firm's continued positive stance on Wells Fargo's stock.
