Goldman Sachs Says JPMorgan (JPM) Story Intact Despite Losses

Goldman Sachs is sticking with its Buy rating and $48 price target on JPMorgan (NYSE: JPM) following the surprise disclosure of a $2 billion trading loss in its synthetic credit portfolio.

The firm said while the losses add uncertainty, the story remains intact. "While overall the 2Q12 loss appears manageable, the broader implications center on risk management practices and the challenging environment, which continues to pressure operating results."

Goldman expects the $800 million loss in its corporate segment will create an EPS swing of -$0.27.

While Goldman expects shares to be pressured on the news, given negative 2012 EPS revisions and the potential for a re-rating of it multiple, shares will be supported by share buybacks and the roughly 3% dividend yield.

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 $40.74 yesterday.

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