On Friday Deutsche Bank upgraded financial services giant JP Morgan Chase & Co. (JPM) as the analysts believe the company’s stock is well positioned for the long term as it is trading at a discount versus future estimates.
The analysts upgraded JPM from “Hold to “Buy.” Shares of JP Morgan are expected to reach $53, up from the previous view of $48. This new target suggests a +14% upside to Thursday’s closing price of $46.37.
Deutsche Bank commented, “JPM shares have lagged other market sensitive banks by 30% since the sharp run up in the group that began in early August (likely due to macro optimism and related strength in higher beta stocks, as well as lower CCAR expectations at JPM). But JPM now trades in line on our 2013E and at a discount on our 2014/15e. We expect JPM to highlight $3-5b of cost saves at its investor day (2/26)—half should be incremental to what’s known so far. Longer term, we think JPM is the best-positioned market sensitive bank for a pickup in consumer loan growth. Raising 2014E to $5.83 and 2015E to $6.27.”
JP Morgan shares were up slightly during pre-market trading on Friday.The stock is up +24.12% over the past year.
The Bottom Line
Shares of JP Morgan (JPM) have a 2.59% dividend yield, based on last night’s closing stock price of $46.37. The stock has technical support in the $42-$43 price area. If the shares can firm up, we see overhead resistance around the $48-$49 price levels.
JP Morgan Chase & Co. (JPM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
FREE Dividend Stock Newsletter
Get the Dividend.com email newsletter to receive:
- A free copy of our acclaimed report, 5 Rules of Winning Dividend Stock Investing
- Free daily investing tips and picks from Dividend.com CEO Paul Rubillo
- Tons of great market analysis and recommendations