The steep sell-off in Wells Fargo in response to concern that higher tariffs on imports into the U.S. will spark an economic slowdown have also worked to clear up valuation concerns and makes the bank’s shares an attractive buying opportunity, according to Piper Sandler. Analyst R. Scott Siefers upgraded Wells Fargo on Monday to overweight from neutral and reiterated a $77 per share price target, implying roughly 24% upside from Monday’s $62.17 close. Shares have pulled back almost 11% over the past month, in line with the S & P 500. “We consider the entry point for WFC much more attractive,” the Piper Sandler analyst wrote. Previously, Siefers had viewed Wells Fargo positively but was concerned about the bank’s stretched valuation. Now, as the broader market recovers from several days of turmoil, Wells Fargo’s forward price-to-earnings ratio sits at 10.2 times, slightly below its five-year average of 11.6. WFC YTD mountain Wells Fargo stock in 2025. Wells Fargo briefly rose as much as 5.6% in early trading Tuesday, boosted by a broader market rebound on hopes that President Donald Trump might be more willing to engage in deals to lessen the effects of high tariffs. The stock had been outperforming its peers in the banking segment prior to last week’s sell-off, Siefers noted, another reason that he remained neutral. The San Francisco-based lender will benefit from the Trump administration’s push to lessen bank regulation, Siefers said. In particular, the White House could move to remove Wells Fargo’s asset cap, which has been a pain point since it was imposed by the Federal Reserve in 2018 . The cap stopped the bank from holding assets above roughly $2 trillion. The asset cap, while largely viewed as a headwind, may have actually helped Well Fargo, Siefers said, because the bank has taken on significantly less credit risk than its peers. That could strengthen Wells Fargo, certainly relative to other money center banks, if the U.S. experiences an economic downturn, or even a recession. “Bottom line: WFC is having its most visible success in years on the regulatory front, and we expect further progress ultimately to relieve the company of what has been a significant company-specific headwind,” Siefers said. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
