With over $6.3 billion in buybacks and dividends in the third-quarter, return of capital remained the key focus for the bank.
The bank is seeing the benefit of a growing economy and rising rates, but shares are fully valued.
In testimony before the Senate, Tim Sloan didn't clearly address whether management changes to date have been sufficient to overhaul Wells Fargo's corporate culture.
We think bank stock prices are priced in to higher interest rates, with Wells Fargo offering a better value.
The overpriced company is not the only fintech firm targeting the lending space, and the banking industry is already extremely competitive.
We expect the bank to repair its tarnished reputation given enough time, and the stock remains attractive relative to our fair value estimate--especially with a current dividend yield around 3%.
Her commentary threw cold water on any ideas for a return to the laissez-faire approach of the early 2000s.
We are maintaining our $88 per share fair value estimate for the wide-moat firm.
We are maintaining our per share fair value estimate of the narrow-moat firm.