In a report released today, Betsy Graseck from Morgan Stanley maintained a Hold rating on JPMorgan Chase, with a price target of $338.00.
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Betsy Graseck’s rating is based on a comprehensive analysis of JPMorgan Chase’s financial outlook and market positioning. She has maintained a Hold rating due to the bank’s current valuation, which she considers to be full, with a price-to-tangible book ratio of 2.9x and a target price-to-earnings ratio of 14x. The anticipated return on tangible common equity (ROTCE) is expected to be between 20-22% over the next three years, aligning with the projected earnings per share (EPS) growth of 8-11% annually.
Graseck notes that the expected growth is primarily driven by a rebound in capital markets, accelerated M&A financing, robust card loan growth, and modest credit losses. However, she emphasizes that the upside potential for the stock, estimated at 12%, is largely driven by EPS growth rather than multiple expansion. Additionally, while JPMorgan Chase’s recent earnings exceeded consensus expectations, a significant portion of this was attributed to the corporate segment, which is known for its variable returns, thus tempering the overall positive impact.
According to TipRanks, Graseck is a 4-star analyst with an average return of 5.2% and a 51.61% success rate. Graseck covers the Financial sector, focusing on stocks such as JPMorgan Chase, Goldman Sachs Group, and Citigroup.