UPDATE - UBS Initiates Coverage on Wells Fargo (WFC) with a Neutral; Strong Franchise, but Waiting on Headwinds to Subside
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Price: $84.24 +0.65%
Rating Summary:
28 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
28 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS initiates coverage on Wells Fargo (NYSE: WFC) with a Neutral rating. PT $27.
UBS analyst said, "WFC is one of the largest banks in the US with a leading franchise presence across the country and a strong capital base. WFC has historically generated above peer performance across a number of key valuation metrics (see our initiation report for Large Cap Banks) and we believe longer-term this will continue."
"Regulatory, Rate Environment, Mortgage near-term overhang: WFC has been designated a G-SIFI bank subject to higher capital requirements. While we anticipate WFC will have no issue in hitting the requirements by 2019, there is uncertainty around the magnitude of capital required longer-term. We view WFC as having somewhat more balance sheet re-pricing risk going into 2012. We also believe the uncertainty around mortgage issues and repurchase request volatility all create a degree of overhang for banks with a higher degree of mortgage exposure."
To see more ratings on WFC, Click Here
UBS analyst said, "WFC is one of the largest banks in the US with a leading franchise presence across the country and a strong capital base. WFC has historically generated above peer performance across a number of key valuation metrics (see our initiation report for Large Cap Banks) and we believe longer-term this will continue."
"Regulatory, Rate Environment, Mortgage near-term overhang: WFC has been designated a G-SIFI bank subject to higher capital requirements. While we anticipate WFC will have no issue in hitting the requirements by 2019, there is uncertainty around the magnitude of capital required longer-term. We view WFC as having somewhat more balance sheet re-pricing risk going into 2012. We also believe the uncertainty around mortgage issues and repurchase request volatility all create a degree of overhang for banks with a higher degree of mortgage exposure."
To see more ratings on WFC, Click Here
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