Nomura Securities Maintains a 'Neutral' on Wells Fargo (WFC); Q3 Review

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.

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