Banking giant Wells Fargo & Company (
) 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 (
), JPMorgan Chase (
) and Citigroup (
), 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
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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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