Wells Fargo Downgraded to “Hold” at Stifel Nicolaus; Lower Interest Margins to Hamper Bottom Line (WFC)

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Banking giant Wells Fargo & Company ( WFC ) on monday received a big downgrade from analysts at Stifel Nicolaus.

The firm cut its rating on WFC from "Buy" to "Hold," citing lower expected net interest margins as a result of the Federal Reserve's QE3 announcement last week.

Accordingly, Stifel Nicolaus also lowered its earnings estimates for the company.

Wells Fargo shares fell 33 cents, or -0.9%, in premarket trading Monday.

The Bottom Line
Shares of Wells Fargo ( WFC ) have a 2.42% dividend yield, based on Friday's closing stock price of $36.13. The stock has technical support in the $32-$34 price area. If the shares can firm up, we see overhead resistance around the $37.50-$40 price levels.

Wells Fargo & Company ( WFC ) is not recommended at this time, holding a Dividend.com 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 The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: WFC

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