Odeon Capital senior banking analyst Dick Bove raised his rating on Wells Fargo to buy from hold, citing the bank's "enormous financial strength."Wells Fargo has been undergoing a severe restructuring program since 2016, when news that employees at the bank had created millions of fake bank accounts severely damaged the reputation of the bank and drew scrutiny from regulators.
Wells Fargo has been undergoing an intense restructuring program since 2016 when news that employees at the bank had created millions of fake bank accounts to meet sales quotas severely damaged the reputation of the bank and drew scrutiny from regulators. Last year, the Federal Reserve capped the bank's asset growth after Wells Fargo discovered more problems with customer dealings.
For Bove, it is not a matter of whether to buy Wells Fargo's stock, its a matter of when. He notes that earnings may not return to their pre-crisis levels until 2021 due to the restructuring efforts.
Only if it does a 100% cultural turn around, which it is not positioned for now.