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Wells Fargo Slips as Analysts Cut Targets but Maintain Positive Ratings

Cramer cites AI execution as a potential edge despite recent earnings shortfalls.

Overview

  • Wells Fargo reported fourth-quarter EPS of $1.62 versus $1.67 expected, including $612 million in severance costs that weighed on profitability.
  • The bank guided to $50 billion in 2026 net interest income, a touch below the roughly $50.33 billion analyst consensus.
  • Shares fell in January following the results, reflecting disappointment on earnings and guidance after a strong prior rally.
  • President Trump floated a 10% cap on credit-card interest rates, pressuring lenders, and Cramer urged banks to propose responses such as limited $1,000 lines at that rate for one year.
  • Truist cut its price target to $100 with a Buy rating and trimmed 2026–2027 EPS estimates, while Evercore ISI lowered its target to $105 with an Outperform rating and slightly reduced out-year forecasts.