JPMorgan (JPM): Notes From Meeting With Jamie Dimon - Oppenheimer
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Oppenheimer analyst, Chris Kotowski, reiterated his Perform rating on shares of JPMorgan (NYSE: JPM) after meeting with Jamie Dimon. He was struck by Dimon's ability to combine intense passion about his company and certain industry issues with a measured steadiness and conservatism. However, it was not enough to divert the analyst from his opinion on the stock that "at ~11.1x our 2017 EPS estimate and ~1.3x TBV, we believe the shares are reasonably priced, but not quite the bargain that they were even in the fairly recent past".
When asked about FICC trading, Mr Dimon responded that he thought about a third of the decline was relating to products that had been cut or severely curtailed after the crisis: CDOs/CLOs, sub-prime mortgages, exotic and longdated derivatives. The rest of the decline, however, could be attributed to "normal spread compression".
Regarding the consumer business, despite the $900 million negative impact from renegotiated credit card co branding, Dimon didn't think that the business would be completely commoditized. This is why they had invested in Chase Pay and other initiatives. Scale, brand and technology are all success factors, and he thought Chase's were as good or better than anyone's.
The analyst does not have a formal price target on shares of JPM.
Shares of JPMorgan closed at $66.65 yesterday.
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