Deutsche Bank Downgrades Wells Fargo (WFC) to Hold, Sees Limited Upside from Here
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Price: $88.82 +0.81%
Rating Summary:
28 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
28 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank downgraded Wells Fargo (NYSE: WFC) from Buy to Hold with a price target of $36.00.
"We believe WFC is best positioned for mortgage activity remaining stronger than expected given its market share of about one-third," the analyst comments. "And gains on sale spreads remain very wide (and have seemingly increased of late). However, both of these are well known and we believe already reflected in the stock. Outside of mortgage, other trends may be a bit sluggish reflecting further NIM pressure (NIM to decline about 15bps in 3Q), only modest balance sheet growth, and likely higher-than-expected expenses (even outside of those related to mortgage volumes). Stepping back longer term, we think WFC could be a winner from an eventual revamp in the mortgage finance model (i.e. the GSEs). However, increasing uncertainty in 2013 over how this plays out may weigh on/limit upside to WFC."
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 $34.70 yesterday.
"We believe WFC is best positioned for mortgage activity remaining stronger than expected given its market share of about one-third," the analyst comments. "And gains on sale spreads remain very wide (and have seemingly increased of late). However, both of these are well known and we believe already reflected in the stock. Outside of mortgage, other trends may be a bit sluggish reflecting further NIM pressure (NIM to decline about 15bps in 3Q), only modest balance sheet growth, and likely higher-than-expected expenses (even outside of those related to mortgage volumes). Stepping back longer term, we think WFC could be a winner from an eventual revamp in the mortgage finance model (i.e. the GSEs). However, increasing uncertainty in 2013 over how this plays out may weigh on/limit upside to WFC."
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 $34.70 yesterday.
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