Why Wells Fargo Shares Are Trading Lower Today

Wells Fargo & Company WFC shares are trading lower after Morgan Stanley downgraded the stock from Overweight to Equal-Weight and lowered the price target from $49 to $46.

Morgan Stanley analyst Betsy Graseck noted 'Risks to the upside include a steeper yield curve, faster rate hikes than expected, faster loan growth, lower expenses, resolution of the 10 outstanding consent orders with asset cap removal before the fourth quarter of 2023, and minimal EPS impact from business exits. Risks to downside include Fed not lifting asset cap until 2024 or 2025, business exits reducing EPS more than expected, slow loan growth, lower than expected operating leverage, and credit deterioration.'

Wells Fargo is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle market companies in the U.S.

Wells Fargo's stock was trading about 3.9% lower at $45.70 per share on Tuesday at the time of publication. The stock has a 52-week high of $51.41 and a 52-week low of $20.76.