Wells Fargo Upgraded To Buy From Neutral At Goldman Sachs

Wells Fargo ATM machines

Image Source: Unsplash


Goldman Sachs analyst Richard Ramsden upgraded Wells Fargo to Buy from Neutral with a price target of $48, up from $46, implying 22% total return potential, inclusive of a 3% dividend yield.

The analyst sees Wells as an "underappreciated earnings growth story," given its "best-in-class" revenue upside and efficiency improvement from interest rates and loan growth-driven net interest income. The bank also has "idiosyncratic" expense rationalization potential as it laps regulatory related cost inflation and continues to rationalize the business footprint, Ramsden tells investors in a research note.

Moreover, in a recessionary scenario, Wells offers less credit risk downside than peers, given its below average loan growth in recent years and less credit card skew, says the analyst.

More By This Author:

Top Five Weekend Stock Stories - Sunday, Oct. 2nd
Here Is What Wall Street Experts Are Saying About Nike Ahead Of Earnings
Opening Day: AIG's Corebridge Gets Lukewarm Reception In Largest IPO Of 2022

Disclaimer: Neither TheoTrade or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.