NEW YORK, Jan 6, 2026, 15:45 EST — Regular session
- Wells Fargo shares were little changed after Baird cut its rating to “underperform”
- Barclays lifted its price target a day earlier, underscoring a split view on valuation
- Investors’ next catalyst is Jan. 14 earnings, with margins and costs in focus
Wells Fargo & Co shares were up about 0.1% at $96.50 in late trading on Tuesday after Robert W. Baird downgraded the lender, a cautious note that landed as the stock hovers near recent highs. The stock traded between $95.12 and $96.51 in the session.
The downgrade follows a strong start to the year for Wells Fargo stock, which closed Monday at $96.38, a new 52-week closing high, according to MarketWatch data. That run-up has left less room for error as investors reassess how much good news is already in the price. 1
Why it matters now: Wells Fargo is due to report fourth-quarter results on Jan. 14. Investors will be looking for direction on net interest income — the spread between what a bank earns on loans and pays on deposits — as well as expenses and credit trends heading into 2026. 2
Baird analyst David George cut Wells Fargo to “underperform” from “neutral” and set a $90 price target, about 7% below Tuesday’s levels. George wrote that the bank’s medium-term return on tangible common equity — a profitability measure that strips out goodwill — was “more than priced in” and recommended “selling into further strength,” pointing to a valuation around 13.5 times expected 2026 earnings and about 2.2 times tangible book value. 3
Other analysts have leaned the other way. Barclays raised its price target on Wells Fargo to $113 from $94 on Monday and kept an “overweight” rating as part of its 2026 outlook for large U.S. banks, with analyst Jason Goldberg citing momentum that carried bank stocks through 2025. 4
The bank also has a fresh corporate tidbit in the background: GATX and Brookfield Infrastructure said they completed their acquisition of Wells Fargo’s rail operating lease portfolio on Jan. 1, with a purchase price of about $4.2 billion for roughly 101,000 railcars. When Wells Fargo announced the deal, it said the move fit its simplification push and would not have a material impact on its financial position or earnings.
Wells Fargo’s muted move came as the Financial Select Sector SPDR Fund was up about 0.6% and the Invesco KBW Bank ETF added nearly 1%. JPMorgan Chase and Bank of America rose modestly, while Citigroup slipped.
But the tug-of-war in analyst calls highlights a familiar risk for banks trading near peaks: earnings guidance can move the stock more than the quarter itself. Higher loan-loss provisions or a softer outlook on margins and costs would test whether the rally can hold.
Traders are now focused on Wells Fargo’s Jan. 14 report and call for any changes in its margin outlook, expense trajectory and capital returns such as buybacks. The company also lists a management appearance at the UBS Financial Services Conference on Feb. 10, keeping another date on the calendar for updates after earnings. 5
