Benzinga - Shares of Wells Fargo & Co (NYSE: WFC) recovered slightly in early trading on Thursday, after remaining under pressure for about a month on concerns about the banking crisis.
Wells Fargo is likely to be “a major beneficiary” in the changing banking environment, according to Raymond James.
The Wells Fargo Analyst: David Long upgraded the rating for Wells Fargo from Outperform to Strong Buy, while reducing the price target from $52 to $47.
The Wells Fargo Thesis: There are several positive catalysts for the bank going forward, Long said in the upgrade note.
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“With uninsured depositors across the country fleeing to larger and safer institutions, we expect incremental growth in Wells’ deposit base,” the analyst wrote.
“Additionally, we believe Wells offers greater EPS growth potential over the intermediate term given the possibility of the removal of consent orders and the associated regulatory expenses, which amount to billions of dollars every year,” Long further stated.
“Net, with WFC shares trading slightly above tangible book value, we believe the current valuation represents an attractive entry point for investors,” he added.
WFC Price Action: Shares of Wells Fargo had risen by 2.36% to $37.76 at the time of publication Thursday.
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