Bank of America Targets $95 on Wells Fargo, CEO Eyes AI-Fueled Lending Growth
BAC•Bank of America analysts view Wells Fargo’s 15% year-to-date share decline as excessive, trading at 10.1x estimated 2027 earnings and 1.7x tangible book value, and set a $95 price target implying 20% upside. CEO Brian Moynihan highlighted inflation pressure, affordability challenges and outlined AI spending to boost lending and diversify revenue.
1. Research Flags Wells Fargo Valuation and Upside Potential
Analysts at Bank of America note Wells Fargo shares are down about 15% year-to-date versus a 4% peer gain, trading at 10.1 times estimated 2027 earnings and 1.7 times projected 2027 tangible book value. They maintained a $95 price objective—implying roughly 20% upside—and cited paths to an 18% ROTCE by 2028 through capital optimization, revenue expansion and improved branch productivity.
2. CEO Highlights Inflation Impact and AI Growth Plans
CEO Brian Moynihan discussed rising inflation pressure on consumers and affordability issues weighing on credit demand. He outlined plans for increased AI investment to redeploy expenses toward revenue-generating activities, enhance credit card and wealth management growth, and support overall lending efficiency.
