Wells Fargo & Company (WFC): Analyst Downgrade "Makes No Sense," Says Jim Cramer

We recently published 11 Stocks Jim Cramer Just Discussed As He Shared Why Stocks Are Rising. Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer recently discussed.

Wells Fargo & Company (NYSE:WFC) is one of the biggest and most controversial banks in America. 2025 has been an important year for the firm as it has finally been able to shake off restrictions levied on it by the Federal Reserve in 2018 after a fake accounts scandal. Wells Fargo & Company (NYSE:WFC)’s shares have gained 16% year-to-date and are up by 33.8% since early April after experiencing a sharp 15.6% drop in April after President Trump’s Liberation Day tariff announcements. In his previous remarks about the bank, Cramer has wondered whether the stock is too cheap and pointed out that Wells Fargo & Company (NYSE:WFC) CEO Charlie Scharf is seeking to gain market share from rivals. This time around, he commented on Raymond James downgrading the stock to Market Perform from Outperform:

“Wells I think is ridiculous. You got 14 times earnings with a final breakout just because it gets to a high. That makes no sense to me.”

Earlier, the CNBC TV host had commented on Wells Fargo & Company (NYSE:WFC)’s valuation:

“Finally, there’s Wells Fargo, another Charitable Trust holding, and a company that’s been on a regulatory winning streak since a month ago when the Fed lifted the asset cap that’s been holding them back for seven years. Wells Fargo announced a 12.5% dividend hike, which brings that yield up to 2.19%…  Bank of America and Wells Fargo are the next cheapest, but they both trade at a little less than 2 times tangible book value, a huge premium to Citi… And look, when you judge the bank stocks on a price-to-earnings basis, you get a similar story… Bank of America and Wells Fargo, 13 and 14 times earnings, respectively…

Still, with the banks featuring discount multiples compared to the overall market, you know what, I’m not so sure that the good times… necessarily have to end for this group. I think they can continue moving higher. The bottom line: In this environment, I bet the big banks are some of the best investments this year, yet still very inexpensive, at least on earnings versus the rest of the market, have more room to run, maybe much more. As for which ones you should own, well, that’s a personal choice. I’m very happy with Goldman Sachs and Wells Fargo. We own those for the Charitable Trust.”

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Disclosure: None. This article is originally published at Insider Monkey.