Analysts’ recent activity
Several analysts downgraded Wells Fargo (WFC) stock despite its better-than-expected first-quarter results on April 12. Wells Fargo posted revenues of $21.6 billion, which beat analysts’ expectation of $21.0 billion. The company posted an EPS of $1.20, which also beat analysts’ estimate of $1.09. However, the bank’s weak net interest income outlook didn’t sit well with the analysts.
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Here’s how analysts reacted to Wells Fargo’s lower outlook:
- Goldman Sachs downgraded Wells Fargo stock to “neutral” from “buy” and removed it from the conviction buy list.
- Bank of America Merrill Lynch downgraded it to “neutral” from “buy.”
- Evercore ISI reduced its rating to “in line” from “outperform” and lowered the target price to $46 from $54 per share.
- Jefferies lowered its target price to $45 from $49.
- Morgan Stanley cut its target price to $51 from $55.
- KBW reduced the target price to $48 from $50.
- BMO lowered its target price to $63 from $65.
- UBS reduced the target price to $53 from $56.
Analysts’ rating and consensus target price
Among the 32 analysts covering Wells Fargo stock, 19 recommended a “hold,” ten recommended a “buy,” and three recommended a “sell.” Analysts’ consensus target price of $52.60 indicates an upside of 12.5% based on its closing price of $46.77 on April 15.