Seeking Alpha

Sell side reacts to JPMorgan's results

  • "Ongoing litigation expenses, higher regulatory costs, and a weak macro economic backdrop limited the company's ability to grow earnings and book value at a meaningful rate over the course of the year," says FBR's Paul Miller, reiterating his Market Perform rating on JPMorgan (JPM +1.7%) following yesterday's Q4 results. "We expect more of the same in 2014, as loan growth expectations remain tepid, margins hold steady, and one-time expenses continue to weigh on earnings."
  • Miller argues this limited earnings potential "warrants a modest discount" vs. JPM's "more benign regional peers."
  • Jefferies' Ken Usdin, on the other hand, reiterates a Buy rating on the stock and $66 price target, saying "a more upbeat I-baking and trading outlook offsets a slightly higher starting point for expenses. JPM remains the cheapest of the universals ... we believe it can regain multiple as legal/environmental issues subside, earnings become cleaner, and core business results continue to outperform."
  • JPMorgan Q4 earnings coverage
  • Earlier: Miller reiterates a Buy rating on Wells Fargo
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Comments (2)
  • Total Return Investor
    , contributor
    Comments (782) | Send Message
     
    FBR is the Rodney Dangerfield of sellside analysts. FCX is up 2.3% since they announced their downgrade yesterday. And JPM is up 1.95% today in the face of their dismissive assessment. Wonder if they would give me a heads-up before they announce their next downgrade so I can buy.
    15 Jan, 01:04 PM Reply Like
  • philipmax
    , contributor
    Comments (266) | Send Message
     
    As long as JPM Management is frank with the public and loses it arrogance, the Street will keep treating it with respect. I hope this new approach will work better for Janie Dimon.
    15 Jan, 02:44 PM Reply Like
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