Why an analyst downgrade of Wells Fargo does not change our conviction in the stock

Wells Fargo shares have more in the tank despite a downgrade from Wall Street analysts, according to Jim Cramer. The news Morgan Stanley analysts on Monday lowered their Wells Fargo rating to an equal weight hold from an overweight buy. They cited a lack of catalysts for the stock now that Wells Fargo's $1.95 trillion asset cap has been lifted . "We were [overweight] Wells heading into the asset cap removal, viewing it as an underappreciated catalyst for faster EPS growth," Morgan Stanley said. "We see more limited upside from here relative to our [overweight] rated stocks." The analysts also argued that Wells Fargo will "not be a beneficiary" of interest rate cuts. That would mean less upside for the bank's net interest income (NII), they said, which is a major source of revenue stream. T