Morgan Stanley upgrades Wells Fargo stock to Overweight

Published on 10/05/2026 at 11:55 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Morgan Stanley sets a USD 102.00 target on October 5, 2026. Wells Fargo stock costs EUR 72.57 on October 5, 2026, up 1.77 percent from EUR 71.31.

Trading-Floor der NYSE mit Kurscharts, Wells Fargo & Co., ISIN US9497461015 — Börsen-Editorial vom NYSE-Handelssaal illustriert die Börsennotierung von Wells Fargo & Co., ISIN US9497461015, Illustration mit AI erstellt.

Wells Fargo & Company (ISIN US9497461015) was trading at EUR 72.57 at Lang & Schwarz on October 5, 2026 at 11:47 a.m. CEST, plus 1.77 percent versus the prior close of EUR 71.31. On October 5, 2026, Investing.com reported that Morgan Stanley upgraded Wells Fargo from Equalweight to Overweight and set a USD 102.00 price target.

Profitability outlook improves

Morgan Stanley tied the upgrade to a better balance between growth and profitability after the removal of Wells Fargo's asset cap. The firm expects net interest margin to stabilize at 2.42 percent through the first quarter of 2027 before reaching 2.49 percent in the fourth quarter of 2027, according to Investing.com.

The forecast matters because Wells Fargo's second-quarter 2026 net interest margin was 2.43 percent, down from 2.68 percent in the second quarter of 2025. The same quarter produced USD 22.62 billion in total revenue, up 9.00 percent from USD 20.82 billion a year earlier, while diluted earnings per share increased to USD 2.00 from USD 1.60, according to the MetaTrader summary of the quarterly report.

Revenue growth meets margin pressure

The contrast is clear: revenue expanded by USD 1.80 billion year over year, but the margin comparison remained unfavorable. For investors, the Morgan Stanley thesis depends on Wells Fargo converting balance-sheet growth into higher returns without extending the pressure on funding costs and asset yields.

Morgan Stanley cited a current return on common equity of 13 percent and projected a rise to 17 percent in the second half of 2027 and 18 percent in 2028. The upgrade therefore rests on a multi-year profitability path rather than solely on the latest quarterly earnings figure.

Third-quarter results set for October

Wells Fargo is scheduled to release fiscal third-quarter 2026 results before the US market opens on October 14, 2026, with analysts expecting diluted earnings per share of USD 1.84 versus USD 1.73 in the year-earlier quarter, according to Yahoo Finance. That report also described the consensus view as Moderate Buy, with an average target of USD 101.38.

Stock rises in afternoon trading

Wells Fargo stock was trading at EUR 72.57 at Lang & Schwarz on October 5, 2026 at 11:47 a.m. CEST, up 1.77 percent from the EUR 71.31 prior close. On the NYSE, the stock was last quoted at USD 80.45 on October 2, 2026, and its 52-week range was USD 72.78 to USD 97.76. The further course of trading is shown by the continuously updated real-time quote of Wells Fargo stock.