Wells Fargo (WFC) gets a Morgan Stanley lift as Cramer holds his ground

Jim Cramer acknowledged on October 5 that his Charitable Trust's Wells Fargo position has been a disappointment, describing the stretch as a drought. That kind of candor from a high-profile holder is worth noting because it signals the position has been carried through real underperformance.

The reason Cramer is sticking with the trade is a call from Morgan Stanley, which he says signals the drought is over. An Overweight rating from a major Wall Street firm carries weight because it puts institutional research behind what had been a frustrating hold, giving the thesis a fresh catalyst.

For Wells Fargo, the backdrop that has weighed on the stock is well known: the Federal Reserve's asset cap has limited the bank's ability to grow its balance sheet the way peers can. Any analyst signal that the story is turning is particularly meaningful in that context, because the cap has been the single biggest structural overhang on the shares.

What to watch is whether Morgan Stanley's view draws other upgrades or broader institutional buying. A lone analyst call can move sentiment briefly, but the more durable shift would come if the market starts pricing in a genuine post-cap recovery for the bank. Cramer's willingness to hold through the pain suggests he sees that resolution as near.