Analysts at Odeon have downgraded Wells Fargo from Buy to Hold, citing significant challenges in the banking industry. Odeon noted that Wells Fargo’s recent Q4 report showed operating earnings of $1.29 per share, but the firm believes the bank may not be able to replicate this result until mid-2026. Odeon also highlighted that the banking industry is facing difficulties as a high-cost producer and is losing market share. The firm believes that proposed Basel III endpoint rules will further weaken the industry’s ability to take share. Odeon also raised concerns about the industry’s balance sheet, which it believes is structured improperly due to the sharp rise in interest rates. Despite Wells Fargo’s attempts to address these issues, Odeon believes the bank is facing a potentially weakening economy.