Morgan Stanley upgraded Wells Fargo & Co. (WFC) to Overweight from Equal-weight on October 5, 2026, and set a $102 price target. The firm said challenges tied to the bank’s balance-sheet expansion after its asset cap was lifted are beginning to subside.
Morgan Stanley views 2026 as a transitional year for Wells Fargo and expects the balance between growth and profitability to improve. It expects the bank’s net interest margin to rise.
The firm forecasts return on tangible common equity of 17% in the second half of 2027 and 18% in 2028.