- Goldman Sachs maintained a Buy rating on Wells Fargo (NYSE: WFC) while lowering its price target to $96.00 from $107.00.
- Wells Fargo reported mixed Q3 results, with revenue of $21.87 billion missing expectations but earnings per share (EPS) of $1.87 beating consensus.
- Despite net interest income of $12.52 billion coming in slightly below forecasts, Wells Fargo maintained its full-year net interest income outlook of about $50 billion.
Goldman Sachs maintained a Buy rating on Wells Fargo (NYSE: WFC) while lowering its price target to $96.00 from $107.00. Wells Fargo is a major U.S. bank that provides lending, deposits, wealth management, and other financial services. Based on a recent share price near $80.74, the new target implies roughly 19% upside.
The target cut follows a mixed third quarter. Wells Fargo reported revenue of $21.87 billion, below the roughly $22.31 billion analysts expected. Earnings came in at $1.87 per share, above the $1.85 consensus estimate. The results show stronger-than-expected profitability per share, even as revenue fell short of expectations.
Net interest income, the difference between interest earned on loans and interest paid on deposits and other funding costs, was $12.52 billion, about 0.9% below forecasts. Wells Fargo kept its full-year net interest income outlook at about $50 billion and projected roughly $13 billion for the fourth quarter.
The bullish case for Wells Fargo depends on deeper customer relationships, stronger fee-generating businesses, and improved profitability. However, higher funding costs remain a key pressure point. Wells Fargo shares were down $2.58, or 3.10%, at $80.74 on October 13, with a 52-week trading range of $72.78 to $97.76.
