Wells Fargo Is 'Fairly Valued,' Its Conservative Approach 'Feels Safer:' Analysts

Wells Fargo & Company WFC reported a net income of $4.89 billion on Friday, up 6% year over year in the first quarter of 2025. The bank reported GAAP EPS of $1.39, beating the consensus of $1.34. 

Revenue fell 3% year over year to $20.15 billion. Analysts expected $20.75 billion.

For fiscal year 2025, Wells Fargo expects net interest income to be ~1 to 3% higher than 2024 net interest income of $47.7 billion, unchanged from prior guidance.

Also Read: Wells Fargo Braces For Economic Slowdown In 2025, CEO Expects ‘Volatility And Uncertainty'

• Truist Securities maintains the Buy rating on Wells Fargo with a price forecast of $84.
• Oppenheimer maintains a Perform rating for Wells Fargo.
• Piper maintains the overweight rating with a price forecast cut from $77 to $75.

Truist Securities maintains the Buy rating with a price forecast of $84. Analyst John McDonald writes the management is not "locked in" to any one net interest income (NII) outcome, citing recent volatility on the short end of the curve and the overall level of uncertainty in the environment as a driver for its tempered expectations.

The original forecast expected 1–2 rate cuts in 2025, while markets now expect about 3, analyst McDonald adds. It also assumed slightly higher 10-year yields than current levels. However, the CFO said a third Fed rate cut later in the year wouldn't significantly affect the company's 2025 net interest income forecast.

Oppenheimer analyst writes, "We think WFC and all the major banks will generally acquit themselves well in whatever the economic environment throws at them. We think WFC has high potential, but is relatively fairly valued for now, and we prefer BAC, C and USB at the point."

Analyst Chris Kotowski maintains a Perform rating for Wells Fargo.

Piper Sandler analyst says credit costs are a potential wild card for Wells Fargo. While the firm is still confident in the bank's overall risk profile, it expects credit loss provisions to be about $300 million higher per quarter than what was reported in Q1.

That's due to a higher forecast for loan charge-offs (50 basis points vs. 44 in Q1) and some extra cushion for loan growth. Analyst R. Scott Siefers notes this estimate may be cautious, especially since Wells Fargo's current reserves already factor in a 5.8% unemployment rate, but with so much economic uncertainty, a conservative approach feels safer.

Piper maintains the overweight rating with a price target cut from $77 to $75.

Price Action: WFC stock is up 0.88% at $63.06 at the last check Monday.

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