Another "Top Pick"
Wells Fargo ( WFC) and Citigroup are Mosby's "current top picks" among large-cap banks, as "both have better than twice the amount of upside potential as the median" for the group. Mosby on Tuesday raised his price target for Wells Fargo's shares to $46.50 from $43.00, while raising his 2013 EPS estimate to $3.90 from $3.89 and lowering his 2014 EPS estimate to $4.30 from $4.40. Guggenheim estimates that Wells Fargo's 2014 ROTCE will be 17.4%, with a cost of equity of 9.5%, for an excess return of 7.9%. Wells Fargo in January raised its quarterly dividend to 25 cents from 22 cents, for a yield of 2.88%, based on Tuesday's closing price of $34.76. "We estimate WFC's dividend yield post this year's