Wells Fargo & Company (WFC) grows revenue and continues creating efficiencies in its super-regional banking services, serving customers in the Midwest and Southeast. Growth for this super-regional bank, according to Marty Mosby, Managing Director and Large-Cap Bank Analyst with Guggenheim Securities, is of high-quality, and the stock price is expected to see upside.
“They’re seeing some revenue growth and have continued efficiencies that they can gain with the scale of the company that they have, so in our opinion Wells is a high-quality super-regional bank that serves customers in these regions that we do think has a lot of upside as they go through this year,” Mosby said.
Mosby believes Wells Fargo will overcome the different pressures that are currently a part of the banking industry, and its size relative to some of its regional competitors will aid WFC in gaining efficiencies relative to peers and aiding in the upward movement of the equity price.
“If you look at the high-growth quality kind of names that we like, that would be Wells Fargo, which is not just particular to these regions but serves customers in these two regions. We think that the balance that they have in their business mix will overcome the different pressures that are going on out there,” Mosby said.