According to Street Insider, Jefferies analyst Ken Usdin trimmed his estimates and price target for Wells Fargo (WFC) from $48 to $47 following the bank's recent third-quarter earnings, while maintaining a buy rating.
"We reduce our '14 and '15 EPS estimates by a dime each to $3.95 and $4.15, respectively," Usdin said. "Greater NIM compression and a higher expense starting point drive the majority of the delta, with better credit quality making up some of the difference. EPS growth is getting tougher as incremental credit leverage approaches exhaustion, but we believe WFC has enough levers to keep growing EPS on a Y-Y basis."
