Nomura Securities Maintains a 'Neutral' on Wells Fargo (WFC); Q3 Review
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Price: $89.94 +0.55%
Rating Summary:
28 Buy, 20 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 3 | Down: 4 | New: 34
Rating Summary:
28 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 3 | Down: 4 | New: 34
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Nomura Securities maintains a 'Neutral' on Wells Fargo (NYSE: WFC) price target lowered by $2 to $29.00.
Nomura analyst, Brian Foran, said, "Wells Fargo’s 3Q revenue trends disappointed. The stock was a popular hiding place for investors among the banks. As a result, there was an outsized negative reaction to a so-so quarter. 4Q is likely to be better given the lagged nature of Wells’ mortgage revenue accounting. Looking past the refi boom, pressure on net interest income remains a recurring theme. We regard the valuation as remaining attractive at 8x earnings, but the same case could have been made for the past year – the problem is estimates keep slipping lower. Our 2012E falls to $2.95 from $3.30. Our 2013E falls to $3.25 as we had previously assumed some bounce-back in net interest income."
For more ratings news on Wells Fargo click here and for the rating history of Wells Fargo click here.
Shares of Wells Fargo closed at $24.42 yesterday.
Nomura analyst, Brian Foran, said, "Wells Fargo’s 3Q revenue trends disappointed. The stock was a popular hiding place for investors among the banks. As a result, there was an outsized negative reaction to a so-so quarter. 4Q is likely to be better given the lagged nature of Wells’ mortgage revenue accounting. Looking past the refi boom, pressure on net interest income remains a recurring theme. We regard the valuation as remaining attractive at 8x earnings, but the same case could have been made for the past year – the problem is estimates keep slipping lower. Our 2012E falls to $2.95 from $3.30. Our 2013E falls to $3.25 as we had previously assumed some bounce-back in net interest income."
For more ratings news on Wells Fargo click here and for the rating history of Wells Fargo click here.
Shares of Wells Fargo closed at $24.42 yesterday.
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