Bank of America Reaffirms Wells Fargo as Top Pick for 2012
Bank of America has published a research report on Wells Fargo & Company (NYSE: WFC) reaffirming the company has a Top Pick for 2012 with a Buy rating.
In the report, Bank of America writes, "Following BofA Merrill Lynch hosted management meetings with WFC in San Francisco, we reiterate our Buy rating on WFC and reaffirm it as our top pick for 2012. We came away from these meetings more convinced that WFC: 1) is among the best positioned large bank to maximize capital return in 2012; 2) has the balance sheet strength and flexibility to take advantage of asset or business line purchases as banks de-lever from global dislocation, providing upside to our estimates; and 3) is appropriately reserved for tail risk, whether on elevated home equity losses or litigation stemming from the pending AG settlement. We make no change to estimates or our $33 PO, which represents 30% potential upside."
Bank of America maintains its $33 price objective on Wells Fargo, which is currently trading up $0.60 from yesterday's $25.31 closing price.
