Wells poised to return to "golden era"?

Wells Fargo & Co. has the earnings power in place to "recreate (the) prior golden era," Guggenheim Securities analysts said in a research note today.

The San Francisco-based bank, which bought Charlotte's Wachovia in 2008, consistently delivered earnings growth of about 10 percent per share before the financial crisis. That changed over the last four years - but the bank entered 2012 better off than it was at the end of 2007, the analysts wrote.

They predict big profits this year as Wells removes about $1 billion in quarterly operating expenses, deploys its liquidity into loan growth and benefits from an improving mortgage market, among other factors.

Shares, which are trading this afternoon around $34, could rise to $43, the analysts said.

"Over time, if management can replicate the prior era of consistent earnings per share growth, we expect WFC to produce 13 percent to 18 percent in annualized total shareholder returns," the note said.