JPMorgan Chase: Best In Class Bank Has More Room To Grow
Summary
- JPMorgan is well positioned to outperform, driven by robust net interest income, deregulation, capital flows, and a rebound in capital markets activity.
- The delay of Basel III Endgame and strong Fed Stress Test results provide JPM with significant capital flexibility for dividends, buybacks, and growth initiatives.
- I estimate a $335 price target for JPM, reflecting a 17% upside based on forward EPS and a P/E multiple expansion to 16x/17x.
- The primary risk remains the inverted yield curve, but JPM’s diversified revenue streams help mitigate this threat; I have initiated a Buy rating.
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