Wells Fargo, B of A, Zions rated by analyst

Thursday, Oct. 7, 1999 | 11:58 a.m.

Bank analyst Joseph Morford of San Francisco-based Dain Rauscher Wessels upgraded his rating for Wells Fargo & Company.

Morford raised Wells Fargo's rating from "buy" to "strong buy," and set its 12-month target price at $49 per share.

"The rating reflects our continued confidence in the merger of Wells and Norwest bank," said Morford. "It also reflects the success the bank is having in the area of Internet banking."

Morford gave a "buy rating" to two other large Western banks, Bank of America and Zions Bancorporation.

"We've set a 12-month target price of $68 per share for B of A," said Morford. "That's a fairly consistent price reflecting the weak showing of the overall bank sector. The bank has been more internally focussed and although they're technically the largest online bank, they've been less aggressive (in marketing that service)."

Morford had praise for the forthcoming merger of Salt Lake City-based Zions and First Security Bank.

"We have tremendous respect for Zions' management, and believe the pending merger will create a powerful Western-based banking presence," he said. "They are currently rated a "buy," and we've set their 12-month target price at $65 per share."

Zions operates as Nevada State Bank in Nevada.