Chappell said Wells Fargo has become "too big to differentiate itself from wider market trends and deliver the growth which management promises and the market expects." Chappell predicted the bank's return on equity will fall toward the long-term industry average of 10%.
Wells earned a new price target of $35, down from Chappell's previous $45 target. The new price target implies a 36% downside for the stock from its Thursday closing price. Wells Fargo stock traded down premarket.
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