FBR Capital Reiterates an 'Outperform' on JPMorgan (JPM); 1Q11 Result Highlights Value of Diverse Platform

FBR Capital reiterates an 'Outperform' on JPMorgan (NYSE: JPM), PT increased from $53 to $56.

FBR analyst says, "Earnings fundamentals were strong due to lower provisions, very strong trading revenues, and better-than-expected net interest income, which drove a headline EPS beat of $1.28 versus our $1.10 estimate. The $0.42 per share of reserve releases this quarter were well above our already strong estimate of $0.25 per share and trading revenue more than doubled from 4Q10. If JPMorgan is able to keep provisions close to the level we saw this quarter and trading revenues at a decent run-rate, it should be able to earn through any outsized expenses it may incur from foreclosure issues and repurchase claims...We are increasing our FY11 operating EPS estimate to $4.95 from $4.65 and maintaining our GAAP EPS estimate of $4.85, largely driven by the current quarter's results. We are maintaining our FY12 operating EPS estimate of $5.65."

For more ratings news on JPMorgan click here and for the rating history of JPMorgan click here.

Shares of JPMorgan closed at $46.25 yesterday.

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