Market Overview

UPDATE: Nomura Initiates Coverage on Wells Fargo at Buy, Solid Performance

Share:
Related WFC
5 U.S. Financial Stocks That Should Do Well Even Without The Fed
Jim Cramer Advises His Viewers On Wells Fargo, Receptos And Celgene
Lucky 7: These Stock Market Leaders Have Top Dividend Growth Rates (Investor's Business Daily)

In a report published Wednesday, Nomura Equity Research initiated coverage on Wells Fargo & Company (NYSE: WFC) with a Buy rating and $42.00 price target.

Nomura Equity Research noted, “Wells Fargo & Company is a consistently solid performer with a top-shelf franchise (13% ROE and 1.4% ROA in 2012 and 12 consecutive quarters of record earnings). We think EPS will grow at a mid- to high-single-digit pace in the next two years as NII grows, expenses head lower and credit costs continue to improve. Shareholders will be rewarded with capital returns, including a ~3% dividend yield and share buybacks. While we expect mortgage activity to again be strong in 2013, we have baked in a 25% decline in mortgage banking income for 2013 and a 23% decline in 2014, which might prove conservative. We believe valuation is attractive at 9x 2014E.”

Wells Fargo & Company closed on Tuesday at $34.76.

Latest Ratings for WFC

DateFirmActionFromTo
Jul 2015Guggenheim SecuritiesUpgradesNeutralBuy
Jul 2015Keefe Bruyette & WoodsMaintainsMarket Perform
May 2015SusquehannaMaintainsNeutral

View More Analyst Ratings for WFC
View the Latest Analyst Ratings

Posted-In: Nomura Equity ResearchAnalyst Color Initiation Analyst Ratings

 

Related Articles (WFC)

Get Benzinga's Newsletters