Bove Cuts Wells Fargo to Sell; Sets $22.50 Price Target

By Matt Egan Features FOXBusiness


Influential bank analyst Dick Bove slapped a sell rating on Wells Fargo (WFC) on Monday, sending shares of the banking giant slumping almost 3%.

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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.

Other big banks were also stuck in the red, including JPMorgan Chase (JPM), Morgan Stanley (MS) and Citigroup (C).

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.