Wells Fargo shares gain for a second session in a row on Tuesday, CEO expects better control over costs in H2

September 13, 2017 9:29 am

According to a statement by Tim Sloan, Wells Fargo & Company’s (WFC) Chief Executive Officer, on September 12th, the third largest US bank could have a better control over costs in relation to its revenues during the second half of the year.

Wells Fargo shares closed higher for a second consecutive trading session on Tuesday. The stock went up 1.80% ($0.91) to $51.57, after touching an intraday high at $51.73, or a price level not seen since August 30th ($51.74). In the week ended on September 10th the shares of the bank holding company lost 2.73% of their market value compared to a week ago, which marked a second consecutive period of decline and also the worst performance since the week ended on May 14th. The stock has neutralized earlier losses and is now up 0.98% so far during the current month, following a 5.32% slump in August. The latter has been a second consecutive monthly loss and also the sharpest one since September 2016. For the entire past year, the shares of the NYSE-listed holding company gained 1.38%. The stock has retreated 6.42% so far in 2017.

Speaking at a bank conference hosted by Barclays yesterday, Sloan noted that Wells Fargo’s expenditures would probably account for 60% to 61% of its revenue base in H2 of 2017, or a ratio slightly lower compared to the first half of the year.

According to the bank’s CEO, the estimate on expenditures does not take into account “potentially nonrecurring expenses, including reasonably possible but not yet accrued litigation expenses.”

At the same time, the lender’s full-year 2017 net interest income is expected to grow by the low- to mid-single digits compared to a year ago.

On the other hand, Wells Fargo is expected to return to its long-term efficiency ratio objective of 55% to 59% at some point in 2018, CEO Sloan said.

According to CNN Money, the 27 analysts, offering 12-month forecasts regarding Wells Fargo’s stock price, have a median target of $60.00, with a high estimate of $67.00 and a low estimate of $35.00. The median estimate is a 16.35% surge compared to the closing price of $51.57 on September 12th.

The same media also reported that 14 out of 31 surveyed investment analysts had rated Wells Fargo’s stock as “Hold”, while 12 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Wells Fargo stock are presented as follows:

R1 – $51.65
R2 – $51.73
R3 (Range Resistance – Sell) – $51.81
R4 (Long Breakout) – $52.05
R5 (Breakout Target 1) – $52.34
R6 (Breakout Target 2) – $52.46

S1 – $51.49
S2 – $51.41
S3 (Range Support – Buy) – $51.33
S4 (Short Breakout) – $51.09
S5 (Breakout Target 1) – $50.80
S6 (Breakout Target 2) – $50.68

By using the traditional method of calculation, the weekly levels of importance for Wells Fargo & Company (WFC) are presented as follows:

Central Pivot Point – $49.84
R1 – $50.41
R2 – $51.24
R3 – $51.81
R4 – $52.38

S1 – $49.01
S2 – $48.44
S3 – $47.61
S4 – $46.78

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