Wells Fargo is set for another year of big returns in 2022 as the outlook for large banks improves, according to Barclays. Analyst Jason Goldberg upgraded Wells Fargo to overweight from equal weight, saying in a note to clients on Monday that the bank should see a boost this year from an improving macro environment and the expected removal of regulatory asset caps. "WFC stands to benefit the most of our coverage universe from higher interest rates while it has made significant investments in its control functions since its retail banking sales practice issues came to light. The eventual lifting of regulatory restrictions also represents a potential catalyst looking out," Goldberg wrote. Wells Fargo was a top performing stock in 2021, with shares rising more than 50%. Barclays raised its price target on Wells Fargo to $62 per share from $50. The new target is 29% above where the stock closed on Friday. Barclays is bullish on the major banks as a whole in 2021 and named Bank of America as its top pick in the sector. "After meaningfully underperforming in 2020, Large-Cap Bank stocks outperformed in 2021, rising 37% compared to the S & P 500's 27% increase. We believe this outperformance can continue into 2022. We are above consensus EPS for the vast majority of our coverage for both 2022 and 2023," the note said. -CNBC's Michael Bloom contributed to this report.
A man walks past a Wells Fargo Bank branch on a rainy morning in Washington.
Gary Cameron | Reuters
Wells Fargo is set for another year of big returns in 2022 as the outlook for large banks improves, according to Barclays.