Wells Fargo (NYSE: WFC) shares experienced a sharp decline during Thursday's intraday trading, plummeting 5% as investors brace for the bank's upcoming first-quarter earnings report. The significant drop comes just a day before the financial giant is set to release its Q1 2025 results, scheduled for Friday before the opening bell.
Adding to the downward pressure, HSBC adjusted its price target on Wells Fargo from $79 to $73, while maintaining a Hold rating. This adjustment, coupled with the imminent earnings release, appears to have sparked a wave of selling among investors. Despite the current drop, analysts polled by FactSet maintain an average overweight rating on the stock with a mean price target of $81.74.
The market's reaction suggests growing uncertainty about Wells Fargo's performance in the face of changing economic conditions. Analysts expect the bank to report quarterly earnings of $1.23 per share, a slight increase from $1.20 per share in the year-ago period. However, revenue is projected to dip slightly to $20.76 billion, compared to $20.86 billion a year earlier. As the financial sector navigates through a complex economic landscape, Wells Fargo's upcoming earnings report will be closely watched for insights into the banking industry's health and future outlook.
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