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Standpoint Research Downgrades JPMorgan (JPM) to Hold; Shares Fairly Valued

September 14, 2012 10:44 AM EDT Send to a Friend
Get Alerts JPM Hot Sheet
Price: $58.64 -0.93%

Rating Summary:
    18 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 27 | New: 8
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Standpoint Research downgraded JPMorgan (NYSE: JPM) from Buy to Hold.

Analyst Ronnie Moas comments, "We initiated JPM in late February and closed the position out on 23-Mar after a 14% move and 1200 bps gain versus the S&P in less than four weeks. After the market over-reacted to the trading loss news in May I reinstated the recommendation with a $43 target for next year. The shares have already moved 17% for us this second time around and beat the S&P by > 650 bps.
The shares are now fairly valued at > 8X declining estimates for 2013 and > 9X trailing twelve months earnings when we factor into consideration remaining European exposure and low interest rates. As I wrote in the May 14 upgrade/reinstate notes … all we were looking for here was a recovery of the loss on the market over-reaction to that trade loss news (and a gain versus the S&P).
I expect JPM will track the S&P from this point forward and I recommend locking in the 25% move and 1500 bps gain versus the S&P-500 since July 20."

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 $41.40 yesterday.




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