Evercore analyst John Pancari maintains $Wells Fargo & Co (WFC.US)$ with a buy rating, and adjusts the target price from $65 to $68.
According to TipRanks data, the analyst has a success rate of 38.9% and a total average return of -6.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Wells Fargo & Co (WFC.US)$'s main analysts recently are as follows:
The expectation is that net interest incomes are anticipated to decline further in the third quarter by an average of 4%, due to delayed deposit repricing coupled with continued, lackluster loan growth, which is likely to surpass fixed asset repricing. Net interest income is only projected to pivot in the second quarter of 2025. Recently, the worry related to charge-offs, notably in credit card and commercial real estate sectors, has lessened, yet banks may still see a continuation of reserve builds.
Anticipated rate reductions have materialized, with expectations for further significant cuts in the near future. While modeling the trajectory for net interest margins (NIM) can present challenges, a rapid pace of rate declines tends to favor the NIM of mid-sized banks. The impact on larger banks, however, tends to vary.
It is anticipated that the third-quarter results for regional banks will signify a consistent fundamental shift that began to form in the previous quarter. It is suggested that downward revisions to earnings per share estimates due to a lower interest rate environment and subdued loan trends could mitigate risks to sector earnings expectations. There is a growing optimism toward the regional banks sector, with the perspective that interest rate cuts could ultimately ease the strain on funding costs, stimulate loan demand, bolster credit conditions, notably in commercial real estate, and offer potential enhancements to the sector's earnings multiples.
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