UBS Maintains a 'Neutral' on Wells Fargo (WFC); 4Q11 Results – Strong Top-Line Growth

UBS maintains a 'Neutral' on Wells Fargo (NYSE: WFC) price target raised from $27 to $31.

UBS analyst says, "Strength in mortgage banking revenues, driven by high production levels and a significantly higher gain on sale margin in 4Q11, coupled with net interest income growth helped by debt restructuring and deployment of excess liquidity, led to a 6% q/q revenue growth at WFC, the strongest rate of growth over the past year."

"While we think the long-term growth prospects for WFC are very good, we do think 2012 poses a degree of challenge given a weak mortgage industry forecast (MBA forecast for production volumes to decline 25% in 2012) and the low rate environment impact on asset yields. These challenges are the main reasons we rate WFC as Neutral at this point."

UBS raises FY12/FY13 EPS estimate by $0.05 each...to $3.15 and $3.50, respectively.

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 $29.83 yesterday.

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