Goldman Sachs maintains its "buy" rating on Wells Fargo Bank (WFC.US), with the removal of the asset ceiling unleashing growth potential.

According to the Zhitong Finance APP, Goldman Sachs research pointed out that on June 3, 2025, the Federal Reserve officially lifted the asset cap imposed on Wells Fargo (WFC.US) since 2018, lifting this key regulatory constraint and opening up new growth opportunities for this American banking giant. Goldman Sachs believes that with the removal of the asset cap, Wells Fargo is expected to benefit from several unique profit drivers. On one hand, it can regain some of the lost deposit market share, providing funding support for growth in multiple business areas; on the other hand, as regulatory and legal expenses decrease, cost savings effects will gradually become apparent. It is expected that by 2026, Wells Fargo's earnings per share (EPS) is expected to increase by 14%-19%, and its ROTCE (return on tangible common equity) will increase by about 200-280 basis points to reach 16.5%-17.3%. Goldman Sachs maintains a "buy" rating on Wells Fargo with a target price of $76.