Macy's downgrade is 'shocking': Cramer

CNBC's Jim Cramer said Monday he was surprised by Deutsche Bank's downgrade of Macy's.

"I find this shocking," Cramer said on "Squawk on the Street." "They're saying 'forget about the real estate issues, they've got real issues on earnings.'"

The bank downgraded the retailer's stock from buy to sell in order to "reflect low confidence that the company can bust out of its SSS rut, sales deleverage, and increasing pressure from shipping, healthcare, and retirement expenses," it said in a note.

"While we acknowledge that real estate monetization is a key risk to our Sell rating, we think the probability of a significant event is low," Deutsche Bank added. It also cut its price target from $71 a share to $63.

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Macy's shares were down more than 2 percent in early trading.