Banking giant Wells Fargo & Company (
) saw its rating and price target boosted on Thursday by analysts
at KBW Research.
The firm raised its rating on WFC to "Outperform" from "Market
Perform," and set a new $36 price target on the stock, which had
closed at $30.08 on Wednesday.
KBW commented that "We are upgrading shares of WFC to Outperform
based on valuation. Our current one-year DCF based price target of
$36, equal to 9 times our 2012 estimate of $4.00, offers 20%
potential returns from current levels. In this note we also review
the expected TARP warrant auction scheduled for after the close on
Wells Fargo shares fell 65 cents, or -2.2%, in premarket trading
The Bottom Line
Shares of WFC have a dividend yield of .66%, based on last night's
closing stock price of $30.08. 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.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here