Everything Warren Buffett: THE US DAILY: Wells Fargo shares could head higher: report

Monday, April 13, 2009

THE US DAILY: Wells Fargo shares could head higher: report

By Reuters

Customers use banking machines at a Wells Fargo branch in Los Angeles, October 3, 2008. REUTERS/Mario Anzuoni

NEW YORK (Reuters) - Shares of Wells Fargo & Co, which rose by about a third last week, could head even higher as the bank's acquisition of Wachovia begins to pan out, Barron's said in its April 13 edition.

Last week, the San Francisco-based company said it expects to post a record first-quarter profit of $3 billion, up about 50 percent from a year earlier, citing a better-than-expected performance from Wachovia and a solid performance in mortgage lending.

Fox-Pitt Kelton analyst Andrew Marquardt said Wells Fargo will continue "to manage through this credit cycle better than most," Barron's reported.

On Thursday, Wells Fargo shares closed at $19.61 on the New York Stock Exchange. Marquardt has a target of $38, Barron's said.

Some question whether Wells may need to further boost its loan-loss reserves, which could eat into future profits, Barron's said. But compared with its rivals, these concerns may simply prove to be short-term issues, Barron's said.

(Reporting by Ilaina Jonas; Editing by Leslie Adler)

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