Wells Fargo Downgraded to “Neutral” at Goldman Sachs (WFC)

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Banking giant Wells Fargo & Company ( WFC ) saw its rating cut on Monday by analysts at Goldman Sachs.

The firm lowered its rating on WFC to "Neutral" from "Buy," citing near-term risks and year-to-date performance that outweigh its earnings power.

Goldman comments, "There is ultimately a lot of earnings power that can drive the shares higher in the near term. That said, we see more relative value in Bank of America ( BAC ), JPMorgan Chase ( JPM ) and Citigroup ( C ), and there are near-term risks including the over-earning of the mortgage servicing business (most pronounced at Wells) and above-peer NPA growth."

Wells Fargo shares fell 36 cents, or -1.2%, in premarket trading Monday.

The Bottom Line
Shares of WFC have a dividend yield of .66%, based on Friday night's closing stock price of $30.11. The stock has technical support in the $26-$28 price area. If the shares can firm up, we see overhead resistance around the $33-$34 price levels. We would remain on the sidelines for now.

Wells Fargo & Company ( WFC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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: BAC , C , JPM , WFC

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