Will This Upgrade Help Wells Fargo (WFC) Stock Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Wells Fargo (WFC) was upgraded to "outperform" from "market perform" by BMO Capital Friday.

Wells Fargo fell 0.2% to $49.24 in morning trading.

The firm set a price target of $55 for the stock. BMO analysts Peter J. Winter, Lana Chan, and Oliver Brassard said Wells Fargo deserves a premium valuation.

"WFC is the bellwether for the banking industry, with near-record profitability measures, an enviable earnings track record driven by very diverse businesses, and less volatility to earnings," the analysts wrote. "We believe WFC possesses a lot of earnings leverage and deserves to trade at a larger premium."

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Separately, TheStreet Ratings team rates WELLS FARGO & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate WELLS FARGO & CO (WFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, expanding profit margins and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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