JPMorgan analyst Vivek Juneja downgraded Wells Fargo to Neutral saying the "tough" Senate hearings and "mounting public scrutiny" will likely result in additional investigations that could pressure expenses.
There is "significant uncertainty about how much some issues will cost and how long they will take," Juneja tells investors in a research note. He believes Wells will need to spend a lot more on litigation and that its revenues "will likely face some slowdown in growth." Juneja cut his price target for the shares to $48 from $53.50.
Wells Fargo closed yesterday up 55c to $46.56.
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