Wells Fargo getting no help from Citi strength, thanks to JPM downgrade


Wells Fargo (WFC -0.5%) is sliding again, despite the boost provided to other big U.S banks by Citigroup’s (C +3.4%) earnings, as investors remain disappointed with WFC's Q2 results and J.P. Morgan downgrades shares to Neutral from Overweight.

WFC faces more near-term headwinds - a modestly higher expense run rate, lower fee revenue growth, higher taxes - to its revenue growth initiatives, JPM says as it cuts its 2014 and 2015 EPS estimates to $4.15 from $4.21 and to $4.32 from $4.37, respectively.

WFC has been the top performing big bank, outperforming peers by ~700 bp YTD, but the firm sees relatively less upside to the stock with lower EPS estimates and the share price close to its new $52 price target (down from $54.50).

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs