Wells Fargo price target raised to $79 from $61 at Keefe Bruyette

Keefe Bruyette raised the firm’s price target on Wells Fargo (WFC) to $79 from $61 and keeps a Market Perform rating on the shares. The U.S. bank stocks have had a strong run following better than expected earnings and, more importantly, the election results, the analyst tells investors in a research note. The firm believes there are “potential tangible outcomes” post-election to drive higher earnings, including investment banking, trading, market sensitive revenues such as custody and asset management. Moreover, the proposed Basel III Endgame requirements are likely to continue to be watered down, adds Keefe. As such, it thinks the group will experience a re-rating given expectations for positive estimate revisions, expanding returns on tangible common equity and greater regulatory capital relief than other banks sectors.