Wells Fargo (WFC) Stock Slides, Credit Suisse Lowers Price Target

Wells Fargo (WFC) stock is falling this morning as Credit Suisse lowers its price target and estimates on the stock.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Wells Fargo (WFC) - Get Report  stock is down 1% to $45.75 this morning as Credit Suisse dropped its price target on the stock in a note released this morning.

The firm has an "outperform" rating on shares of the San Francisco-based bank.

"Sustained outperformance relies on confidence in sustainable growth and ROE [return on equity] prospects," the firm said in a note.

Although the stock is not "cheap" in comparison to competitors, Credit Suisse acknowledged that this is reasonable. "It is more valuable, based on ROE generation that's expected to remain well in excess of peers," the firm added.

However, Credit Suisse also trimmed its estimates for the stock to $4.03 from $4.05 for fiscal year 2016 and to $4.20 from $4.30 for fiscal year 2017.

"We are ... refining our estimates on base case assumptions that include lower long term interest rates and slower GDP growth," analysts said.

Separately, TheStreet Ratings rated thsi stock as a "buy" with a ratings score of A-.

The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and attractive valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: WFC

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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