NEW YORK (TheStreet) -- Shares of Wells Fargo (WFC) were higher in early afternoon trading on Friday, despite BMO downgrading the stock's rating to "underperform" from "market perform" earlier today. This call comes after Wells Fargo and other bank stocks have enjoyed a post-election run-up because President-elect Donald Trump is expected to cut back on regulation in the sector.
The "danger" of this call is that the bank stocks may continue to rally, noted CNBC's Scott Wapner on Friday afternoon's "Halftime Report."
"It's a stupid call. It's a dumb call. I don't know how else to say it," Short Hills Capital managing partner Stephen Weiss said.
If the firm's case is that the stock has a 10% downside, then "I'm buying it," he claimed. Every stock has 10% downside at any point in time.
While the banking sector is "ahead of itself" right now, as BMO said, the senior management at the bank has had a wakeup call and "what they've got gonig on there is absolutely explosive," Weiss argued. Wells Fargo still has the only A-rated balance sheet in the sector.
"It's a very potent balance sheet," Weiss said. "Their business is very, very strong. This is a bump along the road that everybody gets."
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.