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).

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