Jefferies analyst Ken Usdin upgraded JPMorgan to Buy from Hold with a price target of $165, up from $149. U.S. banks continue to face “multiple uncertainties,” including negative earnings revisions, normalization of credit, and finalization of regulatory rules, the analyst tells investors in a research note. The firm says net interest income burdens are growing as deposit mix shift and elevated competition weigh on funding costs. However, its upgrade of JPMorgan reflects the bank’s “better insulation” from capital burdens and provisions. While JPMorgan has been a recent winner, it has a stable earnings outlook, best-in-class return on equity profile, conservative reserving history, and better revenue diversity, says Jefferies.
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