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Wells Fargo (WFC -0.2%) and U.S. Bancorp (USB -0.2%) are both downgraded to Sell by Atlantic...

Wells Fargo (WFC -0.2%) and U.S. Bancorp (USB -0.2%) are both downgraded to Sell by Atlantic Equities' Richard Staite, who says valuations and earnings expectations are already high, leaving little room for upside surprises. Wells is likely "overearning" relative to normal capacity thanks to previously high (now, not so much) refinance volumes. His top pick is Bank of America (BAC -0.4%), currently "underearning" by as much as 50% thanks to high legal and asset servicing costs.
Comments (2)
  • Phr3d
    , contributor
    Comments (206) | Send Message
    uhhmm, no.
    Hard to respect reasoning references that point to events already passed - last sell guidance was at $35, a seemingly high number at the time, and a nice gain to buyers of ~$32. My guess is that they are not happy with that guidance, now.
    Re-fi has Been dead, it was simply an opportunity to be mined - At the Time. and our amazing experts looked at it and said, "OHH, That's why, move on," then 1st quarter, saw Re-fi dropping, (as already expressed by eoy business plan as a near certainty) and said, "OHH, Wells is gonna Tank now." oopps.


    As stated by Stumpf, Too much deposit and no where to invest it hurting NIM is the problem. A few companies envy That problem.


    Meanwhile, .90/sh and up-ticking divs keep rolling in like precision clockwork. Yep, better dump it.
    12 Jun 2013, 05:32 PM Reply Like
  • gap123
    , contributor
    Comments (173) | Send Message
    ^ LOL.


    Yes, please all the 'naysayers' dump your WFC positions, so I can buy em cheaper.


    I cant believe that analyst would even publish that rubbish! Oh well, Japan is taking the world down anyway, so what does it matter.


    Will wait a week to start adding to my positions...and NO, will not be adding to BAC! ha!
    12 Jun 2013, 11:24 PM Reply Like
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