While saying the outgoing CEO 'did a phenomenally good job,' Wells still faces a mountain of problems, Bove, of Odeon Capital Group, says.
Tim Sloan's departure as Wells Fargo CEO gives the bank an opportunity to break from its troubled past, but analyst Dick Bove thinks the problems are likely to remain.
"He changed the corporate culture, he got rid of the problems as he unearthed them in one place after another," Bove said in a phone interview."He really did a phenomenally good job. I think everybody on our side of the business would agree to that." "I'd be selling into this rally," Bove said when shares rose in premarket activity."Until we know that this company has fixed its 10-year-old problem, I don't think this stock is worth buying."
Bove thinks the problem is that the bank has not been able to expand its central business lines while cleaning up after the mess made when it pushed employees to sell at all costs. He recommends the bank expand into overseas markets and grow its investment banking operation.
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