RBC upgrades Wells Fargo to 'outperform' on valuation

** RBC Capital Markets upgrades Wall Street giant Wells Fargo WFC.N to "outperform" from "sector perform"

** Says recent stock weakness gives investors a good entry point to buy WFC's stock

** Brokerage expects WFC to execute on its growth plan to achieve its profitability target once the asset cap is lifted, which should result in a higher valuation over time

** Says optimization of expense levels is another driver of profitability for WFC, adding that costs could shrink further from current levels once regulatory issues are resolved

** Sixteen of 23 brokerages rate the stock "buy" or higher and seven "hold"; median PT is $86, per data compiled by LSEG

** WFC stock down 2% YTD after 42.7% jump in 2024