Wells Fargo (WFC): Culture Now A Handicap Rather Than An Asset - UBS
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UBS analyst, Brennan Hawken, reiterated his Sell rating on shares of Wells Fargo (NYSE: WFC) and cut the PT to $44 as Wells' sales culture is called into question.
The analyst stated "Wells' sales culture has been held out as a differentiated and value creating approach by both management and investors, with above industry deposit growth shown as evidence. However, after the recent regulatory inquiry and settlement, we believe revenue growth could slow as Wells shifts to new metrics and employees push crossselling less aggressively. Further, as we have seen with other SIFIs, we believe there is a risk of incremental compliance expenses from this high profile stumble. While the extent of these headwinds is yet to be seen (see below), we continue to view consensus estimates for 2017 as too high".
The new price target of $44.00 is down from $45.00.
Shares of Wells Fargo closed at $46.52 yesterday.
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