M&T Bank price target lowered to $165 from $175 at Wells Fargo

Wells Fargo analyst Christopher Spahr lowered the firm’s price target on M&T Bank to $165 from $175 and keeps an Equal Weight rating on the shares. The analyst notes M&T’s Q4 update came with weaker-than-expected revenue, leading him to reduce estimates and his target. The company noted good momentum going into 2023 with strong net interest income and better-than-peer cost management, which should lead to strong positive operating leverage. Yet, Spahr notes that operating leverage looks challenged in outbound years given a net interest margin that likely peaks in 2023 and declines in subsequent periods.