Wells Fargo Upgraded to “Outperform” at KBW Research (WFC)

By Dividend.com Staff,

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Banking giant Wells Fargo & Company ( WFC ) 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 May 20th."

Wells Fargo shares fell 65 cents, or -2.2%, in premarket trading Thursday.

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 ( 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 Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: WFC

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