Wells Fargo Receives a Rating Update from a Top Analyst

By Carrie Williams

In a report released today, Marty Mosby from Vining Sparks maintained a Buy rating on Wells Fargo (NYSE: WFC), with a price target of $65. The company’s shares opened today at $50.89, close to its 52-week low of $49.27.

Mosby wrote:

“While the recent issues surrounding WFC have definitely damaged its reputation, we believe the fundamental profitability and earnings power of WFC’s franchise is still intact and currently hidden by recent issues. WFC should still generate a mid to high-single digit underlying increase in shareholder value on an annualized basis from dividend payouts and TBV growth. We believe this strong value creation paired with its currently pressured valuation should provide long-term investors that can wait for the inflection point in the second half of 2018E the opportunity to realize total returns over 20% over the next 12 to 18 months.”

According to TipRanks.com, Mosby is a top 25 analyst with an average return of 17.5% and a 80.5% success rate. Mosby covers the Financial sector, focusing on stocks such as Huntington Bancshares Inc, Goldman Sachs Group Inc, and Fifth Third Bancorp.

Currently, the analyst consensus on Wells Fargo is Hold and the average price target is $63.82, representing a 25.4% upside.

In a report issued on March 29, Sandler O’Neill also reiterated a Buy rating on the stock with a $68 price target.

The company has a one-year high of $66.31 and a one-year low of $49.27. Currently, Wells Fargo has an average volume of 23.07M.

Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WFC in relation to earlier this year. Last month, Lloyd Dean, a Director at WFC bought 4,793 shares for a total of $274,687.

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