S&P Capital IQ Upgrades Wells Fargo from Hold to Buy

October 18 00:00 2011

NEW YORK, October 18 (RainbowNewsLine.com) – Analyst Erik Oja of S&P Capital IQ has upgraded the rating of Wells Fargo & Co (NYSE: WFC) from HOLD to BUY, while adjusting the estimates for the company. The target price is set to $30.

Analyst Erik Oja, in a research note published yesterday mentions that the company reported its Q3 EPS short of the estimates on net trading loss. Considering Q3 results, the analyst lowers 2011 EPS estimate from $2.83 to $2.83. The 2012 EPS estimate is raised from $2.93 to $2.97 to reflect the growth projections from fee income, loans, and improving credit quality offsetting the interest rate risk, the analyst says.  The analyst affirms target price of $30 in line with peers and forward four quarters EPS estimate at $2.96.