Shackled to “muddle through” performance as long as a regulator-imposed asset cap remains in place, Wells Fargo (WFC)
is indeed muddling through. Not much is going for the bank in terms of
loan growth or fee income right now, but investors can at least look
forward to more substantial capital returns in the near term. Wells
Fargo still maintains one of the largest retail banking franchises in
the country, and a strong middle-market lending operation as well, but
the combination of increasing competitive pressure and economic
headwinds is likely to hamper growth. Even so, the valuation is past
“undemanding” and these shares do look cheap even considering the issues
in place at this bank.
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Wells Fargo Remains Undervalued But Ongoing Regulatory Challenges Pressure Growth
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