Wells Fargo to take $4 billion Q4 charge: Bove

Puntúa la noticia :

Nota de los usuarios: - (0votos)

• Bolsa, mercados y cotizaciones
• Empresas y finanzas

Share

Tweet

elEconomista.es en Twitter

Follow @eleconomistaes

EcoTablet - ¡Gratis en App Store!

La plataforma más completa de información y servicios económicos para iPad.

• Suscribirse al boletín
• Imprimir
• Enviar
• Aumentar texto
• Reducir texto
• Haga doble click sobre una palabra para ver su signifcado
• Sudoku: Juega cada día a uno nuevo
• El tiempo: Consulta la previsión para tu ciudad

(Reuters) - Ladenburg Thalmann's Richard Bove cut his price target on Wells Fargo & Co and said the bank will take a charge of $40 billion in the fourth quarter related to the acquisition of Wachovia Corp .

Shares of Wells Fargo were down 9 percent at $26.56 in afternoon trade on the New York Stock Exchange.

Bove expects Wells Fargo to post a profit of $2 per share in 2008, as the charge will not be reflected on the income statement. He also said, "In addition there is apparently another $11 billion in charges due to write downs that will not be shown on the income statement either."

The analyst said the bank's loan losses were rising because of weakness in the economy and margins were being stressed by the decline in asset yields.

Bove said Wells Fargo Chief Financial Officer Howard Atkins acknowledged at a presentation in New York that the bank would see a drop in margins.

"Wells Fargo's problem in this area is that it cannot cut deposit costs in the current environment while the markets continue to cut rates overall," the analyst said. He cut his price target on the stock by $3 to $37.

Bove said positive elements in the long term were that the bank had not stopped lending and was gaining market share. He expects the Wachovia deal to improve earnings when the economy stabilizes beginning in 2011.

"Wells continues to be the pre-eminent bank in this country at the moment with the best record. It is worth owning," Bove said, while maintaining his "buy" rating on the stock.

(Reporting by Adheesha Sarkar in Bangalore; Editing by Anil D'Silva)

PUBLICIDAD

- Recibe nuestros análisis Diarios sobre Divisas, Acciones y Opciones. ¡Apúntate ya! ¡Es GRATIS!

- Opere en más de 8.000 CFDs. Infórmese y obtenga su CFD Trading Guide

- Nuevos spreads en materias primas: Oro tan sólo 0,3 puntos, Plata 0,25, Petróleo 0,35

- Opera desde 2,95 € en tiempo real con Self Bank.