Wells Fargo: Jefferies downgrades stock

(CercleFinance.com) - Jefferies has downgraded Wells Fargo shares to "hold" (from "buy"), trimming its target price for them from $49 to $46 (i.
e. 10.5x its "normalised" EPS of $4.34), after the bank's quarterly earnings release late last week.

The broker says that "A tough 4Q22 result for pre-provision net. revs. (PPNR) and a more subdued guide for '23 (NII/core costs) weigh on our already below-cons. EPS ests. for '23/'24".

Jefferies believes the risk-reward balance is now more balanced, "with positive developments on the regulatory and operating cost front offset by lower core earnings power".


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