The Zhitong Finance App learned that Citibank downgraded Wells Fargo Bank (WFC.US) stock rating from “buy” to “neutral.” Citibank analyst Keith Horowitz believes that the possibility of Wells Fargo's earnings per share increase is largely reflected in the stock's valuation. In a report to clients, the analyst said, “We continue to see benefits from fixed asset repricing, increased fees, and efficiency improvements, but our estimates are not much higher than Wall Street.”

Meanwhile, analysts raised Wells Fargo's target price from $57 to $63 because of the higher return on normalized tangible common equity, reflecting the increased possibility of revising the final rules of the Basel III Agreement.

Analysts raised Wells Fargo's 2024 earnings per share forecast by $0.05 to $5.10, the 2025 earnings per share forecast by $0.15 to $5.70, and the 2026 earnings per share forecast by $0.25 to $6.30.

The analyst said, “According to our implied share cost measurement, Wells Fargo's transaction premium is 10.4%, compared to 11.3% for the same action. We think the risk/reward opportunity for this stock is more appealing.”