Baird Downgrades Wells Fargo (WFC) to Neutral, 'Curb Your Enthusiasm'

Baird analyst David George downgraded Wells Fargo (NYSE: WFC) from Outperform to Neutral with a price target of $55.00.

The analyst comments "Hopping off the stagecoach for now, cutting WFC to Neutral. We have been constructive on WFC shares since we upgraded the stock in the summer of 2020 in the low $20s, as market participants worried about the impact of the pandemic on credit costs, and the company remained in the headlines for issues related to its sales practices. Since that time, WFC has executed reasonably well in navigating the turmoil, as the deposit cap essentially forced the company to get rid of non-operational deposits reducing the aggregate credit risk of the company in the process. We simply find the risk/reward of the stock to be fairly balanced now, trading ~6x forward PPNR. We also are mildly concerned that deposit betas will remain high in 2024, and the group’s ability to meaningfully lower deposit costs could be limited relative to the consensus view."

For an analyst ratings summary and ratings history on Wells Fargo click here. For more ratings news on Wells Fargo click here.

Shares of Wells Fargo closed at $49.92 yesterday.

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