Wells Fargo has lagged rival banks. Morgan Stanley says it’s time to buy

Morgan Stanley has upgraded Wells Fargo's stock to "overweight" from "equal weight" and named it a top pick, with a price target suggesting a 27% gain. Analyst Manan Gosalia believes that 2026 has been a transition year for Wells Fargo and that normalizing balance sheet growth will improve profitability and returns, making the stock undervalued. This upgrade comes despite Wells Fargo's shares lagging behind other major U.S. banks year-to-date.