Barclays Cuts Wells Fargo Price Target to $108 Despite 32% Upside
Wells Fargo's Q1 revenue of $21.4 billion and adjusted EPS of $1.56 fell short of analysts' expectations, prompting shares to tumble as low as $80.32. Barclays cut its price target to $108 from $113, still implying 32.1% upside from current levels.
1. Q1 Earnings Performance
Wells Fargo reported Q1 2026 revenue of $21.40 billion, falling short of analyst projections, while adjusted EPS came in at $1.56. Net interest income totaled $12.10 billion, missing estimates by $0.20 billion, and non-performing assets rose 6.6% year-over-year, increasing pressure on provisions.
2. Stock Market Reaction
Shares declined nearly 6.7% in early trading following the earnings miss, with intraday price swings between a low of $80.32 and a high of $84.50. The drop underscores investor concerns over rising expenses and asset quality trends.
3. Barclays Price Target Revision
Barclays analyst Jason Goldberg lowered the 12-month price target to $108 from $113, citing the earnings shortfall and elevated expense base. The revised target still implies a potential upside of 32.1% from current share levels, reflecting confidence in long-term growth drivers.