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Morgan Stanley Upgraded Wells Fargo Stock

The firm raised its rating on Wells Fargo to overweight and set a $102 price target for the bank.

Updated on Oct. 5, 2026 in Stock Picks

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Morgan Stanley analyst Manan Gosalia upgraded Wells Fargo stock to overweight on October 5, setting a new price target of $102. AI Illustration. Upload story photo >

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Morgan Stanley analyst Manan Gosalia has upgraded Wells Fargo stock from equal weight to overweight. Following the announcement on October 5, 2026, Wells Fargo shares rose more than 1% in premarket trading.

Why it matters

The upgrade is driven by expectations for normalizing balance sheet growth, which is expected to ease funding pressure and stabilize net interest margins for the financial institution. The new price target reflects an anticipated 27% gain from the stock's closing price on October 2, 2026.

The stock is currently valued at 1.5 times its 2027 tangible book value per share. Among market analysts, 18 of 26 currently rate Wells Fargo as a buy or strong buy according to LSEG data.

The players

Morgan Stanley

Morgan Stanley is a major American multinational investment bank and financial services company.

Wells Fargo

Wells Fargo is a leading diversified financial services company providing banking and investment services in the United States.

Manan Gosalia

Manan Gosalia is an analyst at Morgan Stanley who issued the upgrade for the firm.

LSEG

LSEG is a global financial markets infrastructure and data provider that tracks analyst ratings.

The details

Morgan Stanley cited specific improvements in balance sheet dynamics as the primary catalyst for the change in outlook. The bank remains positioned against several major competitors, such as Citigroup and JPMorgan Chase, which have both seen share gains in 2026.

Timeline

  1. October 2, 2026: The price target was calculated based on this Friday close.

  2. October 5, 2026: Morgan Stanley officially upgraded Wells Fargo stock.

  3. 2026: Various performance metrics for major U.S. banks were recorded throughout the year.

  4. 2027: This year serves as the basis for the firm's tangible book value per share valuation.

Market Dynamics

This move aligns with the LSEG analyst consensus ratings, which currently show that 18 of 26 experts view the stock as a buy. It highlights how institutional analysts are evaluating major U.S. banks as they navigate fluctuating interest rate environments and balance sheet pressures.

Investors holding or considering Wells Fargo stock should note the analyst's bullish outlook regarding the bank's net interest margin stability. This upgrade may influence portfolio allocations for those tracking bank performance against 2026 trends for firms like Citigroup and Bank of America.

The takeaway

Investors often look to analyst upgrades as a signal of shifting internal metrics rather than just current share price performance. Understanding the balance sheet normalization process can provide deeper insight into long-term valuation trends for large-cap banking stocks.

Further reading

For more analysis on bank stocks, visit the Stock Picks section.

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