Bullish option flow was detected in WFC stock after Morgan Stanley upgraded the stock on December 6, 2021.
Bullish Option Flow WFC Stock
Make sure to review this lesson on option flow so that you understand the image above.
Wells Fargo upgraded to Overweight from Equal Weight at Morgan Stanley
On December 6, 2021, Morgan Stanley analyst Betsy Graseck upgraded Wells Fargo to Overweight from Equal Weight with a $61 price target, which represents 28% potential upside. About two months after her previous downgrade of the stock, Graseck said the biggest driver of her change in rating is higher Fed funds futures as she identifies Wells as the most asset-sensitive stock in her coverage. She is now adding an incremental three rate hikes to her estimates, partially offset by higher expenses, which drives up 2023 EPS for Wells by 10%, Graseck noted. More generally on the large-cap bank stocks, she advises investors to take advantage of the recent “flash sale” as she contends that the emergence of the omicron variant of COVID-19 only pushes out the time to full recovery by a quarter.
WFC stock upgraded to Buy from Hold at Odeon Capital
On November 29, 2021, Odeon Capital analyst Dick Bove upgraded WFC stock to Buy from Hold. After the Financial Stability Board released its new Global Systemically Important Bank, or G-SIB, ratings last week and assigned Wells Fargo its best rating, Bove said he thinks the likelihood of the regulatory restrictions on the company being lifted is “high” while the stock’s current valuation is “reasonable.”
VIDEO Wells Fargo Stock Analysis 2021 | WFC Stock Valuation | 250% Return over the next Decade
Cameron Stewart, CFA, gives his opinion on WFC stock and makes the argument that the stock could rise 250% over the next decade.
WFC Stock Technical Analysis
The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now. WFC is one of the better performing stocks in the Banks industry, it outperforms 90% of 316 stocks in the same industry. There is a support zone ranging from 48.78 to 49.66. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is a resistance zone ranging from 51.15 to 51.17. This zone is formed by a combination of multiple trend lines in multiple time frames. WFC has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 51.15. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 49.66, a stop order could be placed below this zone. Click here to sign up for email alerts on WFC stock.
