NEW YORK (TheStreet) -- Wells Fargo & Co. (WFC) shares are gaining 0.87% to $49.99 on Monday after Goldman Sachs upgraded the company to "buy" from "neutral" and upped its price target to $60 from $59.
The company can weather storms such as lower oil prices or a slowing Chinese economy, the firm said.
Additionally, Wells Fargo is the "clear winner" with retail and small balance deposit bases projected to see much less pricing pressure as rates rise, according to the firm's note.
"Among banks in our coverage we think Wells Fargo has the clearest path to meet Street '17E EPS, which the market is not currently paying for," analysts said.
In the same note, they downgraded JPMorgan Chase & Co. (JPM) to "neutral" from "buy."
Wells Fargo is slated to post its fourth quarter fiscal 2015 earnings results on Friday before the market opens. Wall Street is expecting the company to earn $1.03 a share on revenue of $21.83 billion.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate WELLS FARGO & CO as a Buy with a ratings score of A-. 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 revenue growth, growth in earnings per share, good cash flow from operations, expanding profit margins and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.