Wells Fargo's stock is soaring 5% in pre-market trading on Tuesday, following an upgrade by Piper Sandler to 'overweight' from 'neutral'. The fourth-largest U.S. lender's shares are experiencing a significant boost as investors react positively to the improved outlook from the respected financial services firm.

Piper Sandler's upgrade is based on Wells Fargo's shift from a cautious approach to a more growth-focused strategy. The brokerage noted that over the past few quarters, there's a clear sense that the company is no longer in "correction" mode. Importantly, Wells Fargo has achieved double-digit year-over-year fee growth for the past four quarters, marking a significant improvement from its previously weaker performance.

This positive development comes at a crucial time for Wells Fargo, as the bank prepares to report its first-quarter results on Friday. The stock's performance has been mixed year-to-date, with shares down approximately 11.5% before this recent surge, compared to a 14.23% decline in the S&P 500 diversified banks index. Currently, 17 out of 23 brokerages rate Wells Fargo's stock as "buy" or higher, with a median price target of $80, according to data compiled by LSEG.