Wells Fargo climbs 3.9% as analysts weigh in on CEO pick

Wells Fargo (NYSE:WFC) advances 3.9%, indicating that investors like the choice of BNY Mellon CEO Charles Scharf to turn the San Francisco-based bank around.

Baird's David George says that with Scharf's "experience and familiarity with the challenged, we have more confidence the company will be able to move quickly and remediate lingering regulatory issues, improve expense leverage, and reignite growth."

George, who rates WFC outperform with a price target of $52, sees WFC being able to exit the Fed consent order in 2020.

At Piper, Kevin Barker says Scharf's appointment may be a "turning point" for WFC, noting that Scharf's experience leading large financial institutions (BNY Mellon, Visa) and "various roles directing consumer-facing business lines" may make him "an effective leader for one of the largest banks in the U.S."

Barker rates WFC at neutral with a $46 price target.

Oppenheimer analyst Chris Kotowski calls Scharf "an excellent choice" and an "exceptionally thoughtful and capable executive" expects to Scharf's assessment of WFC's situation to "easily take a year or more."

Kotowski, who rates WFC at perform, writes "while we view him as an excellent candidate and one likely to ultimately succeed, as investors we would remain on the sidelines for the time being."

Quant rating Very Bullish; SA Authors' average rating is Bullish(1 Very Bullish, 8 Bullish, 2 Neutral, 1 Bearish, 1 Very Bearish).

Previously: Wells Fargo poaches BNY Mellon's Scharf for CEO (Sept. 27)