Wells Fargo is still tainted by its more than 3-year-old phony accounts scandal and has some major hurdles ahead, according to Raymond James.

The firm downgraded shares of Wells Fargo to underperform from market perform, saying the bank is in for a rocky new year.

"Stigma around Wells' account scandal still lingers, as anecdotal evidence suggests the bank continues to lose customers and revenue-producing bankers, and struggles to recruit quality talent," Raymond James banking analyst David Long said in a note to clients on Monday.