Compass Point Stays Bullish on Wells Fargo Following Solid Q2 Results (WFC)

By Staff,

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Banking giant Wells Fargo & Company ( WFC ) on Tuesday caught some continued bullish sentiment from analysts at Compass Point Research.

The firm reiterated its "Buy" rating on WFC and lifted its price target from $39 to $41. That new target suggests a nearly 21% upside to the stock's Monday closing price of $34.02.

A Wells Fargo analyst commented, "Overall, this quarter's result was primarily in-line with expectations, where solid mortgage banking results largely offset any headwinds from increased repurchase provisions and litigation expenses. However, we would note the company did pull their guidance for achieving run rate noninterest expense of $11.25B by 4Q12."

Wells Fargo shares rose 18 cents, or +0.5%, in premarket trading Tuesday.

The Bottom Line
Shares of Wells Fargo ( WFC ) have a 2.59% dividend yield, based on last night's closing stock price of $34.02. The stock has technical support in the $30-$31 price area. If the shares can firm up, we see overhead resistance around the $35-$38 price levels.

Wells Fargo & Company ( WFC ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: WFC

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