CFRA Research analyst Ken Leon on Tuesday downgraded Wells Fargo & Co. (WFC) to hold from buy and cut the firm's price target on the stock to $49 from $53 a share. "We think the transformation of WFC is likely to take longer and limit the upside potential to share price performance," Leon said in a research note. Leon reiterated his 2023 earnings target of $4.70 a share, which is below the consensus view of $5.21 a share in a FactSet survey. "Our more cautious 2023 earnings forecasts assumes a slower U.S. economy, moderate loan volume growth, and higher net interest income for the bank," Leon said. In another setback for the stock, Warren Buffett's Berkshire Hathaway has sold its remaining shares of Wells Fargo and revealed a $3 billion stake in Citigroup (C), according to filings. Wells Fargo shares have fallen 8.9% in 2022, compared to a drop of 14.2% by the S&P 500 and a loss of 14.9% by the Financial Select Sector SPDR ETF (XLF).
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