Bloomberg News

Shares of Wells Fargo (WFC - Get Report) galloped higher Friday after a vote of confidence in the embattled mega bank's incoming CEO by an industry analyst.

Wells Fargo's stock price rose 0.74% to $48.84 a share as a Credit Suisse report argued new CEO Charlie Scharf was the right choice for the financial services giant as it struggles to put behind it a series of marketing and sales scandals and boost earnings in an increasingly uncertain economy.

Credit Suisse analyst Susan Roth Katzke argued that Scharf's background at JPMorgan Chase, BNY Mellon and Visa dealing with "myriad challenges" should put him in good stead as he looks to restore Wells Fargo's tarnished brand, Bloomberg reported. 

Set to take the reins at Wells Fargo on Oct. 21, Scharf must resolve Federal Reserve consent orders, repair its tattered brand and undertake a major revamp of its tech systems, she wrote. 

Wells Fargo's internal spending could reach as high as $1 billion to $2 billion as the bank rushes to "accelerate deployment of a best-in-class operating platform," the Credit Suisse analyst wrote.

As a result, Credit Suisse is cutting its estimate for Wells Fargo's 2020 earnings to $4 a share from $4.35 previously, even as it maintains its neutral rating on the bank's stock.

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