NEW YORK ( TheStreet) -- Shares of Wells Fargo (WFC - Get Report) closed down 1.5% to $42.07 on Wednesday following the bank's downgrade by analyst Scott Siefers of Sandler O'Neil. Seifers, who now has a hold rating on the stock, cited Wells Fargo's valuation as being higher when compared to its peers.However, from my vantage point I believe Wells Fargo's price-to-earnings ratio, which is two points higher than JPMorgan Chase (JPM), is deserved. But this is not the first time Wells Fargo has created doubt among analysts. There were plenty of questions when the bank reported fiscal first-quarter earnings results in April.
Wells Fargo's a Buy Ahead of Earnings
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