Citigroup reported on Thursday that they have increased their price target for financial services company, Wells Fargo & Company(WFC).
The firm has reaffirmed its “Neutral” rating on WFC, and has increased its price target from $35 to $37. This price target suggests a 8% increase over the stock’s current price of $33.84.
An analyst from the firm commented, “we raise our target price to $37 mostly due to rolling forward our valuation model, and we continue to value Wells on our 3-year return estimates and a gradual fade to our 18% long term ROTE assumption for Wells in a normalized rate environment. Given our view that WFC is one of the more crowded longs in the group and our belief that there is a downside bias to EPS estimates, we prefer to remain on the sidelines and wait for bet ter entry point.”
Wells Fargo shares were down 44 cents, or -1.28% during Thursday morning trading. The stock is up 23% YTD.
The Bottom Line
Shares of Wells Fargo (WFC) have a 2.56% dividend yield, based on last night’s closing stock price of $34.33. The stock has technical support in the $31-$32 price area. If the shares can firm up, we see overhead resistance around the $36 price level.
Wells Fargo & Company(WFC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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