UBS Group Has Lowered Expectations for Wells Fargo & Company (NYSE:WFC) Stock Price

Key Points

• UBS Group lowered Wells Fargo’s price target from $104 to $102 but maintained a “Buy” rating, implying approximately 25% upside from the stock’s reported $81.42 price.
• Analyst sentiment remains positive overall, with Wells Fargo holding a consensus “Moderate Buy” rating and an average price target of $99.75; Morgan Stanley upgraded the stock to “Overweight,” while JPMorgan and Goldman Sachs reduced their targets.
• Wells Fargo exceeded quarterly expectations, reporting $1.96 in earnings per share versus a $1.73 consensus estimate and $22.62 billion in revenue, up 8.6% year over year.

Wells Fargo & Company (NYSE:WFC) had its target price lowered by UBS Group from $104.00 to $102.00 in a report released on Monday, Benzinga reports. The brokerage currently has a "buy" rating on the financial services provider's stock. UBS Group's price target suggests a potential upside of 25.28% from the stock's current price.

Other analysts have also issued research reports about the company. Weiss Ratings reissued a "buy (b)" rating on shares of Wells Fargo & Company in a report on Friday, July 17th. Morgan Stanley raised Wells Fargo & Company from an "equal weight" rating to an "overweight" rating and set a $102.00 target price for the company in a research report on Monday. JPMorgan Chase & Co. decreased their price target on shares of Wells Fargo & Company from $95.50 to $91.50 and set a "neutral" rating on the stock in a research note on Friday. The Goldman Sachs Group lowered their price target on shares of Wells Fargo & Company from $107.00 to $96.00 and set a "buy" rating on the stock in a report on Monday. Finally, Truist Financial increased their price objective on shares of Wells Fargo & Company from $94.00 to $95.00 and gave the company a "buy" rating in a research note on Thursday. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $99.75.

Wells Fargo & Company Stock Performance

Shares of NYSE:WFC traded up $0.96 on Monday, hitting $81.42. 12,759,942 shares of the company were exchanged, compared to its average volume of 15,998,875. The company's 50 day moving average price is $86.26 and its two-hundred day moving average price is $83.05. Wells Fargo & Company has a one year low of $72.78 and a one year high of $97.76. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.90 and a current ratio of 0.90. The firm has a market capitalization of $246.20 billion, a price-to-earnings ratio of 11.83, a PEG ratio of 0.87 and a beta of 0.96.

Wells Fargo & Company (NYSE:WFC - Get Free Report) last released its earnings results on Tuesday, July 14th. The financial services provider reported $1.96 earnings per share for the quarter, topping analysts' consensus estimates of $1.73 by $0.23. Wells Fargo & Company had a return on equity of 13.85% and a net margin of 17.55%.The business had revenue of $22.62 billion for the quarter, compared to the consensus estimate of $21.86 billion. During the same period last year, the business earned $1.60 earnings per share. The firm's revenue for the quarter was up 8.6% compared to the same quarter last year. Research analysts expect that Wells Fargo & Company will post 7.28 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Nemes Rush Group LLC bought a new position in shares of Wells Fargo & Company in the fourth quarter valued at approximately $30,000. Security National Bank of Sioux City Iowa IA acquired a new stake in Wells Fargo & Company during the 2nd quarter valued at $28,000. Phillip James Consulting Co. bought a new position in Wells Fargo & Company in the 1st quarter valued at $28,000. Dunhill Financial LLC bought a new position in Wells Fargo & Company in the 2nd quarter valued at $30,000. Finally, Main Street Group LTD acquired a new position in Wells Fargo & Company in the first quarter worth $29,000. 75.90% of the stock is currently owned by institutional investors and hedge funds.

More Wells Fargo & Company News

Here are the key news stories impacting Wells Fargo & Company this week:

• Positive Sentiment: Morgan Stanley upgraded WFC to Overweight from Equalweight and set a $102 price target. The firm believes easing net-interest-margin pressure, stronger fee income, improving Consumer returns and additional capital deployment can drive better earnings and shareholder returns. Morgan Stanley upgrades Wells Fargo & Company to Overweight from Equalweight
• Positive Sentiment: Morgan Stanley expects Wells Fargo to reach approximately 18% return on tangible common equity by 2028, with buybacks providing additional upside potential. The forecast suggests the bank’s returns could improve materially as regulatory constraints ease and management deploys excess capital. Wells Fargo Returns To Improve Through 2028 Amid Buyback Upside Potential
• Positive Sentiment: The upgrade follows a period of underperformance versus rival banks, supporting the view that WFC’s valuation may offer recovery potential if margins and operating returns improve. Wells Fargo has lagged rival banks. Morgan Stanley says it’s time to buy

About Wells Fargo & Company

Wells Fargo & Company NYSE: WFC is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals, businesses, institutions, and government entities. Its offerings include checking and savings accounts, credit cards, personal and commercial loans, mortgages, payment services, and other deposit and credit products.

The company also provides investment banking, capital markets, brokerage, advisory, asset management, and retirement services through its corporate and investment banking and wealth and investment management businesses.

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