WFC Stock up as Goldman Boosts Wells Fargo and Downgrades Citigroup 


WFC stock was trading at $41.40 as of 02:04 PM EDT.

Wells Fargo (NYSE:WFC) is up 1.6% in premarket trading on Monday after Goldman Sachs analyst Richard Ramsden upgraded the company from Neutral to Buy because of its potential for increased revenue, rate-driven efficiency gains, loan growth-driven net interest income, and cost-cutting measures.

In addition, Ramsden downgraded Citigroup (NYSE:C) from Buy to Neutral because he believes the bank will need to raise more capital than its rivals and provide less operating leverage. In the morning trading, Citi shares has decreased by 0.6%.

Wells Fargo Stock (WFC) Advances, But Market Lags

Wells Fargo (NYSE:WFC), he said, “has less credit risk downside than rivals given below average loan growth in recent years and less credit card bias,” in a scenario where there is a recession.

As for Citi (NYSE:C), Ramsden stated that “despite significant progress in 2Q22, C still needs to build capital, delaying the resumption of buybacks into 2023E and also potentially impacting revenue, as C caps RWAs (risk-weighted assets) growth.” In the event of a recession, he anticipates Citi to have greater earnings declines than its competitors.

In terms of Wells Fargo (NYSE:WFC), Ramsden’s Buy rating is comparable to the Strong Buy recommendation given by Quant, and it is also in line with the Buy rating given on average by SA Authors. In contrast to the average SA Authors’ Buy recommendation, his Neutral rating for Citigroup (NYSE:C) is in line with the Quant rating of Hold.

WFC Stock: Opinion

Zach predicts that when the time for Wells Fargo’s next earnings report draws closer, the bank will aim to show strength. EPS of $1.11 are anticipated, which would be a decrease of 5.13% from the same quarter last year. The revenue is expected to be $18.72 billion, which is 0.62% less than the same quarter last year, according to our most recent average estimate.

For the entire year, WFC is expected to earn $4 per share and generate $72.93 billion in revenue according to Zacks Consensus Estimates. These outcomes would signify changes of -19.19% and -6.53% over the previous year, respectively.

Featured Image-  Megapixl @ Imdan 

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