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Wells Fargo: Multiple Analysts Downgraded the Stock

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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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  • 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.

Besides Wells Fargo, analysts also recommended a “hold” on JPMorgan Chase (JPM) and Goldman Sachs (GS) stock. Analysts recommended a “buy” on Citigroup (C) and Bank of America stock.

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