Mixed earnings didn't tell the full story of our Wells Fargo outlook.

Wells Fargo's Mixed Q1 Earnings Prompt Analysts to Trim Price Target

Wells Fargo & Company's first-quarter earnings report failed to impress analysts, prompting them to trim their price target for the bank. The company's mixed results, which included a beat on revenue but a miss on earnings per share, led analysts to reassess their expectations.

In a report, analysts at Wells Fargo Securities, the investment banking arm of the bank, lowered their price target from $53 to $51.50, citing the company's mixed quarter. The analysts maintained their "overweight" rating on the stock, however, citing the bank's strong capital position and growing loan demand.

The company's first-quarter earnings report showed a revenue beat, with net interest income rising 12% year-over-year to $9.4 billion. However, earnings per share came in at $1.10, missing analysts' estimates of $1.15. The company's non-interest expense also rose 4% year-over-year, contributing to the earnings miss.

Despite the mixed quarter, analysts at Wells Fargo Securities noted that the bank's loan demand is growing, particularly in the commercial and industrial loan segments. They also highlighted the company's strong capital position, which provides a buffer against potential economic downturns.

The analysts' trimmed price target reflects their reduced expectations for the bank's earnings growth, but they remain optimistic about the company's long-term prospects. "We continue to believe that Wells Fargo is well-positioned to benefit from a strengthening economy and growing loan demand," the analysts wrote in their report.

Wells Fargo's stock price has been volatile in recent weeks, falling as much as 2% in the days following the company's earnings report. However, the bank's shares have since recovered, and are currently trading around $49.50 per share.