Wells Fargo & Co (NYSE:WFC) was featured as the call of the day Wednesday on CNBC's "Fast Money Halftime Report."
What Happened: Piper Sandler analyst Scott Siefers upgraded Wells Fargo from a Neutral to an Overweight rating and raised the price target from $50 to $64.
Siefers said Wells Fargo is sensitive to higher rates, adding that such is not fully accounted for in the stock's valuation.
Morgan Stanley also named Wells Fargo a top pick for 2022. The firm called the stock a top play for rate hikes given its rate sensitive and attractive valuation.
See Also: Wells Fargo Bumps Up Price Targets For Some Aerospace & Defense Companies
Terranova's Take: "The question is the loan growth," Virtus Investment Partners' Joe Terranova said.
Although he acknowledged Wells Fargo CEO Charles Scharf has done an excellent job of reducing expenses, he says loan growth will hold the stock back moving forward.
"I'm not necessarily sure you're going to see the above-average, incredibly-strong loan growth Wells is going to need to catch up with a lot of the banking institutions," Terranova said.
During the company's most recent earnings report, Wells Fargo said average loans fell 8% from the prior year. Until the company is able to show that loans are no longer in decline, Terranova plans to avoid the stock.
From Last Week: This Is What Whales Are Betting On Wells Fargo
Wells Fargo is set to announce its fourth-quarter 2021 financial results before the market opens on Jan. 14.
WFC Price Action: Wells Fargo has traded as low as $29.68 and as high as $56.13 over a 52-week period.
The stock was up 0.04% at $56.08 at time of publication.
Photo: Mike Mozart from Flickr.
