Continue Reading Below
The high-profile downgrade is the latest negative development for the financial sector, which has been rocked by a slew of regulatory concerns and new signs the U.S. economic recovery may be stalling out.
Bove, a closely watched analyst at Rochdale Securities, downgraded Wells Fargo to sell from neutral and cut his price target to $22 from $32.50, Reuters reported.
The news hit Wells Fargos stock, sending it dropping 2.49% to $26.19 Monday morning and leaving it down 13% on the year.
The losses are nothing new for big banks. The KBW Bank Index of major U.S. banks lost 4.1% of its value in May, outpacing the 2.3% fall for the Dow Jones Industrial Average.