Evercore Partners Upgrades JPMorgan (JPM) to Overweight; Sees Balanced Risk/Reward

April 5, 2013 6:42 AM EDT
Get Alerts JPM Hot Sheet
Price: $83.67 --0%

Rating Summary:
    17 Buy, 19 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 1
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Evercore Partners upgrades JPMorgan Chase & Co. (NYSE: JPM) from Equalweight to Overweight, raising its price target from $44 to $55.

Analyst Andrew Marquardt comments, "We are upgrading shares of JPMorgan...as the risk/reward appears very attractive at this point given healthy fundamentals, levers to pull if the environment toughens, wellpositioned if cap mkts continue to improve, and valuation as JPM is the cheapest large-cap bank. Given JPMorgan hasn’t been invited to the recent multiple expansion for the sector, we see limited downside if sector expectations are reset with earnings, and significant upside to “norm” EPS and multiple expansion potential, esp given SOTP."

Marquardt notes that other fundamentals at JPMorgan remain healthy "with likely solid loan growth, deposit inflows, least NIM risk among peers, notable expense leverage, mortgage banking well balanced, meaningful credit leverage from add’l reserve release in r/e book, and still above-avg capital deployment despite conditional approval and whale/CIO issues."

The firm is modeling Q113 EPS of $1.43 and raised FY13 EPS expectations from $5.26 up to $5.50.

For an analyst ratings summary and ratings history on JPMorgan click here. For more ratings news on JPMorgan click here.

Shares of JPMorgan closed at $47.49 yesterday.

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