Wells Fargo downgraded by Jefferies on ‘subdued’ view on net interest income and costs

Wells Fargo & Co.
WFC,
+3.25%
stock fell 1.3% in premarket trades on Tuesday after Jefferies analyst Ken Usdin downgraded the stock to neutral from buy and reduced his price target to $46 from $49, after the bank provided its fourth-quarter results. Usdin cited the bank’s “tough” result of pre-provision net revenue and a “more subdued” estimate from the bank on its net interest income and core costs for 2023. “We see risk-reward as more even from here, with positive developments on the regulatory and operating cost front offset by lower core earnings power,” Usdin said.