Wells Fargo shares rise despite price target cuts

Wells Fargo shares continued to rise on Monday, gaining nearly 2.5%. This increase comes despite recent cuts to price targets from analysts, including Morgan Stanley, which lowered its target from $86 to $79 per share. However, this still suggests about 9% growth potential compared to the previous closing price. The stock has shown a strong rebound, rising 10% since March 10. Analysts believe Wells Fargo could benefit from the potential removal of a long-standing asset cap imposed by the Federal Reserve. This cap limited the bank's growth and was a result of past scandals. There is speculation that the Fed may lift this cap sometime in 2025, which would allow Wells Fargo to expand its business activities significantly. Despite the challenges posed by trade policy uncertainty and a slower economic outlook, traders seem optimistic about Wells Fargo's future. Many experts, including Jim Cramer, advise investors to hold onto their shares for now, as they believe the stock has more room to grow. The potential removal of the asset cap is seen as a critical factor for the bank's future performance. Overall, traders are focusing on the positive signals for the U.S. economy and the potential for Wells Fargo to enhance its revenue streams and reduce operational costs. With planned changes and a recovery underway, investors are hopeful for further gains in Wells Fargo's stock.