Wells Fargo draws downgrade to neutral at Odeon Capital

Wells Fargo & Co.
WFC,
-0.34%
stock was down by 0.1% in premarket trades Monday, as Odeon Capital downgraded the stock to neutral from buy. While the bank’s second-quarter profit of $1.25 a share beat the analyst consensus estimate of $1.16 a share, other data points were more troubling, analyst Richard Bove said in a research note. “While these [earnings] numbers are positive, a deeper look into the company’s results suggests that it seems to have stalled in its recovery,” Bove said. “Moreover, it appears that the company’s real book value is well below its stated book value. This is likely to lead to the bank needing an equity injection.”