Once the asset cap is removed, Well Fargo would be able to execute its growth strategy and reach its 15% return on tangible equity target. Shares of Wells Fargo have declined in recent weeks, but RBC sees the pullback as an opportunity for long-term investors, citing the bank’s improving outlook.

Wells Fargo's (WFC) efforts to improve profitability and satisfy regulatory issues make it an attractive buying opportunity, ahead of an expected lifting of a regulatory order that caps its asset growth,