The recent pullback of Wells Fargo shares provides a buying opportunity for investors, according to RBC Capital Markets. Analyst Gerard Cassidy upgraded shares to outperform from sector perform. He maintained his price target of $80 per share, which implies 18% upside from Wednesday’s close. Wells Fargo has lost 3% week to date and 12% in March alone amid a broader market sell-off and heightened volatility. WFC 1M mountain WFC in past month “The recent stock price decline gives investors an opportunity to buy WFC’s stock. WFC, under the leadership of CEO Charlie Scharf, has executed on its plan to satisfy all its regulatory issues while increasing profitability,” Cassidy wrote in a Thursday note. According to Cassidy, Wells Fargo should be able to reach a higher valuation once it lifts its asset cap and achieves 15% return on average common equity. The company could also benefit from deregulation, he added. “WFC is well capitalized and is likely to see regulatory relief under the expectation of a less onerous regulatory environment,” said Cassidy. “The company remains committed to returning excess capital via dividend payments and opportunistic share repurchases.” “Over time and after the Basel III “Endgame” proposal is finalized, we expect the company will work to bring down its [common equity tier 1] ratio by returning excess capital to shareholders,” Cassidy added. The upgrade puts Cassidy in the majority of analysts covering Wells Fargo. LSEG data shows that, of the 23 who cover it, 15 have a buy rating on it. The average analyst price target signals 20.5% upside ahead as well.