Berkshire Did Not Participate in the Surge of Goldman and Other Banking Stocks

Written by Emily J. Thompson, Senior Investment Analyst

WFC+2.23%

USB+1.28%

BAC+0.73%

Source: Barron's

Updated: 6d ago

0mins

Source: Barron's

Berkshire Hathaway's Investment Mistake: The company’s sale of bank stocks is considered its worst investment decision in the last decade.
Potential Profits Lost: Estimates suggest that Berkshire Hathaway left over $50 billion in potential profits on the table due to this sale.

WFC

$88.04+Infinity%1D

Analyst Views on WFC

Wall Street analysts forecast WFC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WFC is 98.66 USD with a low forecast of 74.00 USD and a high forecast of 113.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

17 Analyst Rating

10 Buy

6 Hold

1 Sell

Moderate Buy

Current: 86.120

Low

74.00

Averages

98.66

High

113.00

Current: 86.120

Low

74.00

Averages

98.66

High

113.00

HSBC

Hold

maintain

$67 -> $74

2026-01-07

Reason

HSBC

Price Target

$67 -> $74

AI Analysis

2026-01-07

maintain

Hold

Reason

HSBC raised the firm's price target on Wells Fargo to $74 from $67 and keeps a Hold rating on the shares. Bank stocks have pulled back, offering selective opportunities to add exposure, says the analyst, who raised the firm's 2025-26 adjusted EPS estimates among the group by about 1%-7% to incorporate higher net interest income, investment banking fees, and share repurchase estimates.

TD Cowen

Steven Alexopoulos

Hold

maintain

$93 -> $102

2026-01-07

Reason

TD Cowen

Steven Alexopoulos

Price Target

$93 -> $102

2026-01-07

maintain

Hold

Reason

TD Cowen analyst Steven Alexopoulos raised the firm's price target on Wells Fargo to $102 from $93 and keeps a Hold rating on the shares. The firm adjusted bank targets as part of a Q4 earnings preview. TD expects "solid" Q4 reports for the banks with continued balance sheet growth, repricing tailwinds, and a "likely more dovish" Federal Reserve chair in 2026. These "durable tailwinds" should lift bank stocks in 2026, the analyst tells investors in a research note.

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Wolfe Research

Outperform

maintain

$99 -> $109

2026-01-07

Reason

Wolfe Research

Price Target

$99 -> $109

2026-01-07

maintain

Outperform

Reason

Wolfe Research raised the firm's price target on Wells Fargo to $109 from $99 and keeps an Outperform rating on the shares as part of the firm's Top 10 Themes for 2026 note on the Banks, Brokers, and Alternative Managers. Heading into 2026, the firm notes Retail Brokers and Alts are its favorite subsectors and names Wells Fargo as one of its top picks in the sector.

Truist

John McDonald

Buy

maintain

$100 -> $104

2026-01-06

Reason

Truist

John McDonald

Price Target

$100 -> $104

2026-01-06

maintain

Buy

Reason

Truist analyst John McDonald raised the firm's price target on Wells Fargo to $104 from $100 and keeps a Buy rating on the shares. Core themes for the U.S. large-cap banks feel similar to last year's, including ROTCE expansion levers, net interest margin healing, capital return, positive operating leverage capacity, and whether GSIBs can continue to outperform regionals, the analyst tells investors in a research note. Each of the stocks in the firm's large-cap banks universe has an attractive mix of EPS growth and ROTCE expansion drivers, which set up a solid outlook for 2026, Truist says.

About WFC

Wells Fargo & Company is a financial services company. The Company provides a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, to individuals, businesses and institutions. The Company operates through four segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. The Company provides consumer financial products and services, including checking and savings accounts, credit and debit cards, and auto, residential mortgage, and small business lending. In addition, the Company offers financial planning, private banking, investment management, and fiduciary services. It also provides financial solutions to businesses through products and services including traditional commercial loans and lines of credit, letters of credit, asset-based lending and leasing, trade financing, treasury management, and investment banking services.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.