The move is based on valuation and lower quality of earnings, analysts said.
"Wells Fargo is trading within 1% of our $54 price target, and we see limited upside in the near term," analysts noted.
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"While the company has been meeting or beating EPS estimates for the past six quarters, it is doing so from lower-quality sources such as elevated market-sensitive revenues, an unusually low tax rate, and aggressive reserve releases, while core revenue trends have been under pressure," analyst said.
Shares of Wells Fargo closed up 0.15 at $53.44 yesterday.
Separately, TheStreet Ratings team rates WELLS FARGO & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate WELLS FARGO & CO (WFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."