Banking giant Wells Fargo & Company (
) on Friday saw its rating, price target, and earnings estimates
all boosted by analysts at Goldman Sachs.
The firm said it upgraded WFC from "Neutral" to "Conviction
Buy," and raised its price target from $36 to $38. That new target
implies a 21% upside to the stock's Thursday closing price of
Goldman also raised its 2011 earnings estimate for WFC to $2.90
per share, and moved its 2012 estimate up to $3.80 per share.
The analyst noted the company's expenses are stabilizing and
could see higher operating leverage in coming quarters as a result.
Goldman also thinks WFC could significantly boost its dividend and
announce a large share buyback this year.
Wells Fargo shares rose 85 cents, or +2.7%, in premarket trading
The Bottom Line
Shares of Wells Fargo (
) have a .64% dividend yield, based on last night's closing stock
price of $31.44. The stock has technical support in the $28 price
area. If the shares can build momentum on this morning's upgrade,
we see overhead resistance around the $40 price level.
Wells Fargo & Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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