Will the misery never end for Wells Fargo & Co (NYSE:WFC) and by extension for owners of Wells Fargo stock? With the echoes of 2016’s account-opening scandal finally abating and with investors digesting the fact that the bank won’t be allowed to expand its asset base until further notice, it’s tough to imagine things getting any worse.

But, they just got worse. How so? The Consumer Financial Protection Bureau, or CFPB, may be on the verge of imposing a fine of as much as $1 billion for abusive auto insurance and mortgage lending practices.

Don’t get confused here. This is separate from the 2016 fine of $185 million, incurred for the unauthorized opening of a couple of million credit card and bank accounts. That matter was (mostly) left in the past. This is a whole new problem that, apparently, was only recently uncovered.

In the midst of the mania — WFC stock has fallen more than 20% from its January peak — it may be time to scoop up these excessively beaten-down shares. UBS agrees.

Gutsy Upgrade for WFC Stock

To say rivals like Bank of America Corp (NYSE:BAC) and Citigroup Inc (NYSE:C) have outperformed a trouble-laden Wells Fargo would be a considerable understatement. They’ve trounced Wells Fargo, as the company has simply been unable to escape its self-inflicted wounds.

There comes a time, however, when enough is enough. Investors don’t seem to have recognized that the selloff from WFC stock has more than passed that point.

It’s not an easy scenario to see, granted. Analysts collectively rate WFC between a “Buy” and a “Hold,” and the headlines clearly look grim. The most recently reported quarter was a mixed bag, at best, and with no clarity as to when the Federal Reserve will allow the company to grow its total assets again, what’s the point?

Take a closer look at the bigger picture, though. Notice how unusually extreme the pessimism surrounding this stock is. Yet, also notice that despite their lackluster opinions of Wells Fargo stock, the analyst community still holds a collective price target of $63.05. That’s 20% better than Monday’s closing price.

It’s not a situation that’s gone unnoticed, though so far analysts have been shy about sticking their neck out. But now that UBS analyst Saul Martinez has done so, perhaps more will follow.

Martinez recently upgraded WFC stock to a “Buy,” explaining, “To us, the market is discounting a sizable reduction in earnings power vs. current estimates.” He added, “Wells Fargo’s substantial underperformance has created a buying opportunity. Wells Fargo shares have lagged the average bank in our coverage universe by a substantial 49 percentage points.”

It’s not an easy call to digest, particularly now that Wells Fargo has become something of a punching bag and a punchline.

The market, and plenty of analysts to boot, have a way of assuming the worst at the worst possible time. As the old cliche goes, it’s always darkest before dawn. And right now for Wells Fargo, things seem almost pitch black. This is where WFC stock could start to climb the wall of worry.

Bottom Line for Wells Fargo Stock

Don’t read the wrong message here. Anyone stepping into Wells Fargo stock right now should be committed for the long haul, prepared for plenty of ups and downs, betting that there’s no other scandal left to find. It’s also a bet that new company leadership has no interest in repeating the sins of the past. And it could take a year or more to really see it through.

It may be worth the wait, though. Between rising interest rates and the Federal Reserve’s ban on the bank’s asset base likely to be lifted sooner than later, Wells Fargo’s turnaround could develop while nobody’s looking.

Those kinds of trades often end up being the most rewarding.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley.