Wells Fargo & Company (WFC  ) received a lower price forecast from RBC Capital Markets on Tuesday, even as the brokerage maintained its bullish outlook following the bank's third-quarter earnings.

RBC Capital Markets analyst Gerard Cassidy lowered his price forecast to $92 from $100 while maintaining an Outperform rating.

Cassidy said Wells Fargo is shifting from defense to growth after more than seven years of regulatory restrictions on its balance sheet.

"After seven-plus years of being restricted from growing its balance sheet due to its regulatory order, the move from defense-to-offense is underway as WFC surpassed $2.25 trillion in assets in 3Q26," Cassidy said.

Growth Strategy Gains Momentum

The analyst highlighted Wells Fargo's expansion beyond $2.25 trillion in assets during the third quarter as evidence of its renewed growth ambitions.

He also pointed to management's medium-term return on tangible common equity target of 17% to 18%, which signals a stronger focus on growth and capital efficiency.

Cassidy expects the bank's dividend payout ratio to eventually reach 30% to 40%. He also believes Wells Fargo could benefit from capital relief under proposed Basel III regulations.

Strong Earnings Support Bullish Outlook

Wells Fargo reported third-quarter earnings of $1.87 per share, beating RBC's estimate of $1.86 and the consensus estimate of $1.82.

Revenue increased 2% year over year to $21.9 billion, supported by growth across all four operating segments.

Net interest income rose 4.7% to $12.5 billion, while the bank's efficiency ratio improved to 63% from 65% a year earlier.

However, net interest margin narrowed to 2.43% from 2.61%, reflecting lower interest rates on floating-rate assets and higher deposit costs.

Cassidy also highlighted Wells Fargo's cost discipline, including an 8% reduction in headcount.

RBC Maintains Earnings Estimates

Despite lowering his price forecast, Cassidy kept his earnings estimates unchanged at $7.25 per share for 2026 and $8.10 for 2027.

The revised valuation reflects RBC's updated outlook, including higher net interest income offset by increased expenses.

The brokerage's $92 price forecast implies roughly 14% upside from the $80.74 share price cited in its Oct. 13 research report, excluding dividends.

WFC Price Action: Wells Fargo shares were down 1.16% at $79.80 at the time of publication on Wednesday, according to Benzinga Pro data.