WELLS FARGO STOCK DROPS ON RATING DOWNGRADES
In the Premarket trading session on Monday, Wells Fargo & Co’s stock was trading at 54.45-lower by 0.02% as compared to its previous close.
Investment bank Raymond James earlier today downgraded the company’s stock to underperform from market perform. The investment bank sees Wells Fargo’s revenue to contract for a fourth consecutive year in 2020. Raymond James also said that the financial services company is still tainted by the phony accounts scandal.
The investment bank forecasts Wells’ revenue to drop by 6.8% in 2020. Raymond projects loan growth of a peer-worst 0.5%. Raymond James sees profitability metrics to fall in 2020 and remain below the peer average through at least 2021. Stocks of Wells Fargo have rallied more than 18% year-to-date through Friday.
On the technical front, the current price is above the MA5. The current price is above the middle line of the Bollinger Bands but is heading downwards. The stock is expected to trade lower today.
TRADE SUGGESTION- LIMIT SELL AT 54.49 TAKE PROFIT AT 54.24 STOP LOSS AT 54.61