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Wells Fargo Started as a “Buy” at Jefferies; Potential Upside with Downside Protection (WFC)

By Dividend.com,  July 09, 2012, 08:41:05 AM EDT

Banking giant Wells Fargo & Company ( WFC ) on Monday caught some bullish commentary from analysts at Jefferies & Co.

The firm initiated coverage on WFC with a "Buy" rating and a $39 price target, suggesting an 18% upside to the stock's Friday closing price of $33.05.

A Jefferies analyst commented, "Wells delivers above-average ROEs on a strong capital base, and has growth potential even at $1.3 trillion of assets. As for other banks, net interest margin pressure and tough comps in mortgage banking put us modestly below consensus for '13 ($3.55 vs. $3.64). While WFC has closed some of the valuation gap to regional peers, we see upside potential with downside protection."

Wells Fargo shares were mostly flat in premarket trading Monday.

The Bottom Line
Shares of Wells Fargo ( WFC ) have a 2.66% dividend yield, based on Friday's closing stock price of $33.05. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 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.


This article appears in: Investing, Stocks

Referenced Stocks: WFC



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