Morgan Stanley upgrades Wells Fargo stock to Overweight

Published on 10/07/2026 at 15:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Morgan Stanley set a USD 102.00 target on October 5, 2026. Wells Fargo stock was EUR 71.81 on October 7, 2026 versus EUR 72.47.

Aquarell einer Stadtskyline mit Finanzdistrikt, Wells Fargo & Co., US9497461015 — Aquarellmalerei einer Finanzmetropole symbolisiert den Bankstandort von Wells Fargo & Co., ISIN US9497461015, Illustration mit AI erstellt.

Wells Fargo stock (ISIN US9497461015) was trading at EUR 71.81 at Lang & Schwarz on October 7, 2026 at 3:34 p.m. CEST, minus 0.91 percent versus the prior close of EUR 72.47. Investing.com reported on October 5, 2026 that Morgan Stanley upgraded Wells Fargo from Equalweight to Overweight and set a USD 102.00 price target.

Morgan Stanley sees stronger returns

The upgrade centers on profitability rather than a short-term price move. Morgan Stanley said balance-sheet growth after removal of the asset cap had pressured net interest margin through lower-yielding Markets assets and higher funding costs, while moderating growth could reduce margin dilution.

The research firm expects more revenue from existing client relationships and continued operating leverage. Its analysis points to a path toward 17.00 percent return on tangible common equity in the second half of 2027 and 18.00 percent in 2028, according to Investing.com.

Second-quarter earnings set the base

Wells Fargo reported USD 6.41 billion in net income for the second quarter of 2026, compared with USD 5.49 billion in the second quarter of 2025. Diluted earnings per share rose to USD 2.00 from USD 1.60 over the same periods, according to Inside-Filings.

The comparison gives Morgan Stanley's thesis a measurable earnings base, but the share price remains below the USD 97.76 52-week high shown in the October 7 quote. The current market capitalization is USD 243.6 billion, while the 52-week range extends from USD 72.78 to USD 97.76.

Results arrive October 13

Business Wire reported on October 5, 2026 that Wells Fargo will announce third-quarter 2026 earnings on October 13, 2026, at approximately 7:00 a.m. Eastern time. The company plans a conference call at 10:00 a.m. Eastern time, making the upcoming report the next major test of the return-improvement argument.

Wells Fargo stock stays below its high

Price source: Lang & Schwarz. Wells Fargo stock was trading at EUR 71.81 on October 7, 2026 at 3:34 p.m. CEST, minus 0.91 percent versus the prior close of EUR 72.47. The further course of trading is shown by the continuously updated real-time quote of Wells Fargo stock.