Street View: Wells Fargo's profit beat reinforces long-term growth case

By Reuters News

** Wells Fargo WFC.N beat Wall St estimates for Q3 profit on Tuesday, but lower-than-expected net interest income and revenue overshadowed the earnings beat

** Median PT of 27 brokerages covering the stock is $95 - LSEG data

GROWTH DRIVERS BEGIN TO COMPOUND

** J.P.Morgan ("neutral," PT: $91.50) says WFC's well-controlled expenses, moderate loan growth and stable credit quality position the bank to benefit as its revenue and earnings mix continues to evolve

** RBC ("outperform," PT: $92) says WFC's growth playbook is gaining traction following the removal of its asset cap, with broad-based revenue momentum, improving efficiency and balance-sheet growth supporting its medium-term profitability targets

** Morgan Stanley ("overweight," PT: $101) says Wells Fargo's stronger-than-expected Q4 NII outlook and stabilizing NIM support further improvement in profitability

** Jefferies ("buy," PT: $100) says WFC's stable NIM and growing markets business underpin sustained balance-sheet and earnings growth as the lender works toward its 17%-18% medium-term ROTCE target

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