Bank of America Securities analyst Ebrahim H. Poonawala raised his price target on Wells Fargo & Company (WFC) to $84, citing the bank’s progress in achieving high-teens return on average tangible common equity (ROTCE). The analyst believes the removal of the 2018 asset cap in early 2025 will be a significant catalyst for the stock, attracting new investors and potentially driving a re-rating of its valuation.
Citigroup’s recent earnings report sent shockwaves through the financial sector, with its stock plummeting over 5% due to mounting credit losses, regulatory scrutiny, and a disappointing return on tangible common equity (ROTCE). The stock’s decline reflects a broader trend of weakening consumer spending and a potential industry-wide risk of asset caps, raising concerns about the future profitability of banks like Citigroup.
