JPMorgan price target raised to $203 from $195 at Keefe Bruyette

Keefe Bruyette raised the firm’s price target on JPMorgan to $203 from $195 and keeps a Market Perform rating on the shares. It was a rough day for JPMorgan’s stock on Friday, declining 6.5%, which was less about earnings and more about strong investor expectations, in the firm’s view. JPMorgan’s increase in net interest income guidance ex markets from $88B to $89B disappointed investors. Moreover, the stock came into earnings trading north of 12.5-times vs. an 11.1-times historical multiple, Keefe Bruyette notes. The firm says that although Friday’s stock reaction may be overdone for arguably one of the world’s top financials, it recommends investors look for the stock to pull back toward its historical valuation and compress a portion of the strong premium to super-regional banks to meaningfully overweight the shares.