Wells Fargo Quarterly Update; Oppenheimer Reiterates Perform


In a research report issued Wedensday, Oppenheimer analyst Chris Kotowski reiterated a Perform rating on Wells Fargo & Company (NYSE:WFC), following the company’s third-quarter earnings release. No price target was provided.

Kotowski noted, “After breaking the 17 consecutive “up” quarterly EPS string last quarter, WFC is back at it, reporting EPS of $1.02, in line with both our and consensus expectations. This is up one penny from last quarter, and while one could quibble that there were $300M of reserve releases (~$0.04 per share), we would note that operating losses were ~ $200M above their average, and mortgage servicing was a bit soft on FMV changes with lower rates. Thus we think the $1.02 fairly reflects the underlying core operating results. We did not change our 2015 estimate and we think the shares are 5-10% undervalued, although we think the Big 3 (BAC, C & JPM) represent better value at this juncture.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Kotowski has a total average return of 8.3% and a 65.1% success rate. Kotowski has an 6.9% average return when recommending WFC, and is ranked #456 out of 3332 analysts.

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