Wells Fargo

By Steve Gelsi Citigroup cuts Wells Fargo rating to neutral on ‘balanced’ risk/reward but boosts price target Citi has downgraded Wells Fargo & Co. to neutral from buy after a quick gain in its stock price this year relative to its expected performance. Citi analyst Keith Horowitz said Wells Fargo (WFC) is now trading at a premium relative to its peers. He hiked his price target for Wells Fargo to $63 from $57 on expectations of a higher, normalized return on tangible common equity, based on his view that federal regulators may pare back proposed capital requirements under the Basel III endgame regime. The stock closed at $57.01 on Tuesday. “We believe the risk/reward is fairly balanced,” Horowitz said in a research note issued late on Tuesday. Before Wednesday’s trades, Wells Fargo’s stock rose 15.8% in 2024, outpacing the 13.9% rise by JPMorgan Chase & Co. (JPM) and a 14.4% […]

Wells Fargo & Co. is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Wells Fargo’s key regulator said it closed the 2016 consent order placed on the bank for opening fake accounts, the subject of a yearslong scandal. The Office of the Comptroller of the Currency said Thursday the bank had made sufficient progress revamping its systems that guard against customer harm. Wells Fargo shares rose on the news. The bank remains under regulatory scrutiny, including an order from the Federal Reserve that restricts its growth until the regulator is convinced it is being run safely. When Chief Executive Charlie Scharf arrived at Wells Fargo in 2019, the bank was under 12 consent orders. It has now closed six of them, though also added two more during his tenure. Dow Jones & Co. owns Factiva.

Wells Fargo (NYSE:WFC) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/30/2024 25% Morgan Stanley $54 → $63 Maintains Overweight 01/18/2024 -3.17% Odeon Capital → $48.8 Downgrades Buy → Hold 01/16/2024 -0.79% Piper Sandler $51 → $50 Maintains Neutral 01/16/2024 15.08% Raymond James $55 → $58 Maintains Strong Buy 01/09/2024 1.19% Deutsche Bank → $51 Downgrades Buy → Hold 01/08/2024 9.13% Baird → $55 Downgrades Outperform → Neutral 01/02/2024 30.95% Barclays $54 → $66 Maintains Overweight 12/14/2023 11.27% Odeon Capital → $56.08 Upgrades Hold → Buy 12/08/2023 -6.75% Piper Sandler $45 → $47 Maintains Neutral 12/06/2023 9.13% Raymond James $52 → $55 Maintains Strong Buy 12/04/2023 7.14% Morgan Stanley $52 → $54 Maintains Overweight 12/01/2023 -0.79% Goldman Sachs $45 → $50 Maintains Buy 10/16/2023 7.14% BMO Capital $52 → $54 Maintains Market Perform 09/22/2023 -12.7% Deutsche Bank $44 → $44 Reiterates Buy

Wells Fargo (NYSE:WFC) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/18/2024 4.92% Odeon Capital → $48.8 Downgrades Buy → Hold 01/16/2024 7.5% Piper Sandler $51 → $50 Maintains Neutral 01/16/2024 24.7% Raymond James $55 → $58 Maintains Strong Buy 01/09/2024 9.65% Deutsche Bank → $51 Downgrades Buy → Hold 01/08/2024 18.25% Baird → $55 Downgrades Outperform → Neutral 01/02/2024 41.9% Barclays $54 → $66 Maintains Overweight 12/14/2023 20.58% Odeon Capital → $56.08 Upgrades Hold → Buy 12/08/2023 1.05% Piper Sandler $45 → $47 Maintains Neutral 12/06/2023 18.25% Raymond James $52 → $55 Maintains Strong Buy 12/04/2023 16.1% Morgan Stanley $52 → $54 Maintains Overweight 12/01/2023 7.5% Goldman Sachs $45 → $50 Maintains Buy 10/16/2023 16.1% BMO Capital $52 → $54 Maintains Market Perform 09/22/2023 -5.4% Deutsche Bank $44 → $44 Reiterates Buy → Buy 09/07/2023 -3.25% HSBC → $45 Initiates Coverage

By Steve Gelsi Odeon Capital cuts Wells Fargo to hold from buy on ‘margin problem,’ while Morgan Stanley gets downgraded to market perform by KBW on wealth-management transition Wells Fargo & Co. and Morgan Stanley have picked up separate downgrades as analysts sift through fourth-quarter earning updates in the face of headwinds tied to the cost of deposits and retooling at the two big banks. Odeon Capital on Thursday downgraded Wells Fargo & Co.’s stock (WFC) to hold from buy as the bank faces challenges posed by a lack of growth in loans and difficulty attracting deposits, analyst Dick Bove said in a research note. “This is a ‘wait until next year’ story,” Bove said. “The bank is well-managed and taking the right steps to position itself for the intermediate and longer term.” Wells Fargo’s stock was down by 0.2% in premarket trading on Thursday. It reported higher fourth-quarter profit

Wells Fargo (NYSE:WFC) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/16/2024 23.12% Raymond James $55 → $58 Maintains Strong Buy 01/09/2024 8.26% Deutsche Bank → $51 Downgrades Buy → Hold 01/08/2024 16.75% Baird → $55 Downgrades Outperform → Neutral 01/02/2024 40.1% Barclays $54 → $66 Maintains Overweight 12/14/2023 19.04% Odeon Capital → $56.08 Upgrades Hold → Buy 12/08/2023 -0.23% Piper Sandler $45 → $47 Maintains Neutral 12/06/2023 16.75% Raymond James $52 → $55 Maintains Strong Buy 12/04/2023 14.63% Morgan Stanley $52 → $54 Maintains Overweight 12/01/2023 6.13% Goldman Sachs $45 → $50 Maintains Buy 10/16/2023 14.63% BMO Capital $52 → $54 Maintains Market Perform 09/22/2023 -6.6% Deutsche Bank $44 → $44 Reiterates Buy → Buy 09/07/2023 -4.48% HSBC → $45 Initiates Coverage On → Hold 08/01/2023 10.38% Morgan Stanley $49 → $52 Maintains Overweight 08/01/2023 11.44% Atlantic Equities $50 → $52.5

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We decrease our target price by $3 to $49, 9.3x our 2025 EPS estimate, below the three-year historic average of 11.0x given stagnant growth expectations. We decrease our 2024 EPS view by $0.19 to $4.93 and start 2025’s at $5.28. WFC posted Q4 adjusted EPS of $1.29 vs. $1.45 a year ago, $0.21 above consensus on revenue of $20.5 billion. It was a disappointing quarter as net interest income (NII) fell 5% Y/Y on 22 bps of net interest margin compression to 2.92%. Additionally, management indicated that it expects 7%-9% NII contraction in 2024. Although WFC has outperformed peers from a funding perspective, we think deposit pressures are finally catching up and we point to 12% Q/Q interest expense growth as evidence. Further pressure is coming from

The following is a summary of the Wells Fargo & Company (WFC) Q4 2023 Earnings Call Transcript: Financial Performance: Wells Fargo reported net income of $3.4 billion, with a growth in net income and diluted earnings per share due to higher revenue and lower expenses. The revenue growth was conveyed by a significant growth in net interest income as well as higher noninterest income. The common stock dividend increased to $0.35 and they repurchased $12 billion of common stock. Despite these performances, average loans witnessed a modest increase due to a decrease in loan demand and average deposits fell because of increased consumer spending. The net loan charge-offs rose by 17 basis points owing to commercial real estate office and credit card loans. The Net interest income for Q4 showed a decline by $662 million, due to lower loan deposit balances, reflecting in the company’s expectation of a 7-9% decrease

Wells Fargo (NYSE:WFC) reported quarterly earnings of $0.86 per share which beat the analyst consensus estimate of $0.71 by 21.13 percent. This is a 28.36 percent increase over earnings of $0.67 per share from the same period last year. The company reported quarterly sales of $20.48 billion which beat the analyst consensus estimate of $20.28 billion by 1.00 percent. This is a 2.22 percent increase over sales of $20.03 billion the same period last year.

Wells Fargo says it gained market share in its credit card products and investment banking businesses in 4Q. Chief Executive Charlie Scharf says the bank’s new credit card products drove a rise in consumer spending significantly better than the industry average. He also points to 26% revenue growth in Wells Fargo’s Corporate and Investment Bank segment. Company-wide revenue rises just over 2% to $20.48 billion, surpassing the $20.3 billion forecast by analysts according to FactSet.

Wells Fargo (NYSE:WFC) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/09/2024 3.2% Deutsche Bank → $51 Downgrades Buy → Hold 01/08/2024 11.29% Baird → $55 Downgrades Outperform → Neutral 01/02/2024 33.55% Barclays $54 → $66 Maintains Overweight 12/14/2023 13.48% Odeon Capital → $56.08 Upgrades Hold → Buy 12/08/2023 -4.9% Piper Sandler $45 → $47 Maintains Neutral 12/06/2023 11.29% Raymond James $52 → $55 Maintains Strong Buy 12/04/2023 9.27% Morgan Stanley $52 → $54 Maintains Overweight 12/01/2023 1.17% Goldman Sachs $45 → $50 Maintains Buy 10/16/2023 9.27% BMO Capital $52 → $54 Maintains Market Perform 09/22/2023 -10.97% Deutsche Bank $44 → $44 Reiterates Buy → Buy 09/07/2023 -8.94% HSBC → $45 Initiates Coverage On → Hold 08/01/2023 5.22% Morgan Stanley $49 → $52 Maintains Overweight 08/01/2023 6.23% Atlantic Equities $50 → $52.5 Maintains Overweight 07/18/2023 -0.85% Morgan Stanley $47 → $49 Maintains