Morgan Stanley analyst Betsy Graseck has maintained their neutral stance on JPM stock, giving a Hold rating on May 8.
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Betsy Graseck’s rating is based on a combination of factors that suggest a stable outlook for JPMorgan Chase. She does not anticipate any changes to the bank’s 2025 financial guidance, including net interest income, expenses, and card net charge-offs, despite the current economic volatility and uncertainty regarding tariff impacts. This stability in guidance reflects a conservative approach given the early stage of the year and the potential for interest rate cuts.
Betsy also notes that JPMorgan Chase is likely to maintain its through-the-cycle return on tangible common equity (ROTCE) target of approximately 17%. However, she expects the bank to exceed this target in the coming years, driven by a higher interest rate environment and efficient capital management. The potential for accelerated share buybacks, supported by excess capital, could further enhance ROTCE. Despite muted loan demand, the bank’s strong capital position allows for significant shareholder returns through buybacks and dividends.
Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of JPM in relation to earlier this year.