Goldman Sachs Upgrades JPMorgan (JPM) to Buy; Well-Positioned to Defend Returns and Attractive Valuation

(Updated - July 24, 2020 5:13 AM EDT)

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Goldman Sachs analyst Richard Ramsden upgraded JPMorgan (NYSE: JPM) from Neutral to Buy, PT $116. The analyst said the bank is well-positioned to defend short-term returns and sustain its dividend over the next several quarters. The analyst added that valuation is attractive at current levels.

The analyst comments "We upgrade JPM to Buy, from Neutral, with a $116 12m price target, based on 12x 2021E PE multiple on our updated earnings. We believe JPM is well positioned to defend short-term returns and sustain its dividend over the next several quarters, as well as having the highest longer term return profile of the large banks. At current prices, we believe JPM’s valuation of 1.6x PTBV (1.4x 2021E PTBV) and 10x 2021E P/E is attractive considering our belief it can earn a 16% ROTCE in 2022 (implying a 1.9x PTBV today based on historical ROTCE/PTBV regression) and drive ~30% annual earnings growth over the next two years."

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 $98.98 yesterday.

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