Wells Fargo: The Asset Cap Party Is Over, But Opportunities Abound, As Do Risks

Wells Fargo is at a turning point post-asset cap removal, with Q2 2025 results broadly meeting expectations but guidance disappointing on net interest income. WFC must demonstrate positive core NII and an efficiency ratio below 63% in the next quarter to justify a buy rating and a $93–95 target price. Valuation already reflects much of the good news; without operational improvement, the stock risks reverting to sector multiples, limiting upside to just the dividend.