Wells Fargo & Company (WFC) was downgraded by Goldman Sachs on Friday as analysts believe recent returns are now reflected in the current valuation of the financial services giant.
The analysts downgraded Wells Fargo from “Buy” to “Neutral” and now see shares reaching $40, a +15% upside to Thursday’s closing price of $34.76.
“While we still believe that WFC is positioned to grow EPS, we see less levers than several peers given 1) its already best-in-class funding costs, 2) less expense leverage and 3) the transition in mortgage banking from an earnings tailwind to a source of earnings support,” the Goldman Sachs analyst comments.
Wells Fargo shares were down 31 cents, or -0.89%, in premarket trading on Friday.
The Bottom Line
Shares of Wells Fargo (WFC) have a 2.53% dividend yield, based on last night’s closing stock price of $34.76. The stock has technical support in the $31-$32 price area. If the shares can firm up, we see overhead resistance around the $36-$37 price levels.
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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