Wells Fargo & Co. Given “Neutral” Rating at Compass Point (WFC)
Wells Fargo & Co. (NYSE:WFC)‘s stock had its “neutral” rating reaffirmed by analysts at Compass Point in a research report issued to clients and investors on Monday, American Banking & Market News reports. They currently have a $49.00 price objective on the stock, up from their previous price objective of $47.00. Compass Point’s price objective would indicate a potential upside of 1.91% from the stock’s previous close.
The analysts wrote, “We maintain our Neutral rating and increase our price target on shares of WFC to $49 from $47 following the release of 1Q14 earnings. Our higher price target is a reflection of slightly higher FY15 EPS primarily due to slightly higher loan growth assumptions. Despite lower NIM and industry-wide headwinds on mortgage banking income, WFC reported another quarter over quarter increase in EPS, primarily driven by a lower than effective tax rate and higher gains on debt and equity investments. “The $0.08/share tax benefit this quarter will not be recurring, but we will likely see elevated equity investment returns for the foreseeable future given the strong performance of private equity investments and robust IPO market. If we were to strip out the returns from equity investments, core PPNR came in at $7.3B compared to our $7.9B estimate and leads us to question whether the core earnings capacity of WFC can continue over the long run. “In the near term, we think the is answer is yes, but eventually the pressure from a competitive mortgage market, low interest rates and significant excess liquidity will make it difficult to grow EPS.”
Shares of Wells Fargo & Co. (NYSE:WFC) traded up 0.06% during mid-day trading on Monday, hitting $48.11. The stock had a trading volume of 24,320,700 shares. Wells Fargo & Co. has a 52 week low of $36.19 and a 52 week high of $50.49. The stock has a 50-day moving average of $48.10 and a 200-day moving average of $45.04. The company has a market cap of $253.2 billion and a price-to-earnings ratio of 11.96.
Wells Fargo & Co. (NYSE:WFC) last issued its quarterly earnings data on Friday, April 11th. The company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.09. The company had revenue of $20.60 billion for the quarter, compared to the consensus estimate of $20.60 billion. During the same quarter in the previous year, the company posted $0.92 earnings per share. The company’s revenue for the quarter was down 3.0% on a year-over-year basis. Analysts expect that Wells Fargo & Co. will post $4.05 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at BMO Capital Markets raised their price target on shares of Wells Fargo & Co. from $48.00 to $53.00 in a research note on Tuesday, April 8th. Separately, analysts at Goldman Sachs raised their price target on shares of Wells Fargo & Co. from $47.00 to $51.00 in a research note on Monday, April 7th. Finally, analysts at Atlantic Securities upgraded shares of Wells Fargo & Co. from an “underweight” rating to a “neutral” rating in a research note on Monday, March 24th. They now have a $53.00 price target on the stock, up previously from $48.00. One research analyst has rated the stock with a sell rating, seventeen have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $47.61.
Wells Fargo & Company is a bank holding company. It has three operating segments: Community Banking, Wholesale Banking and Wealth, and Brokerage and Retirement.
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