Wells Fargo's (WFC) recent share price decline provides investors with a good entry point to buy stock, RBC Capital Markets in a note to clients Thursday.

Wells Fargo, under Chief Executive Charlie Scharf, has been able to address its regulatory issues, RBC said.

Wells Fargo's "strong" target for a 15% return on average tangible common equity, or ROATCE, likely means that once the bank's asset cap is lifted, it "will execute on its growth plan to achieve its profitability target," the note said.

The bank is also "well capitalized and is likely to see regulatory relief under the expectation of a less onerous regulatory environment," RBC said.

RBC also noted that Wells Fargo's "optimization of expense levels is another driver of profitably."

The investment firm upgraded Wells Fargo to outperform from sector perform and kept the company's $80 price target.

Price: 68.95, Change: +0.02, Percent Change: +0.03