Keefe, Bruyette & Woods Upgrades JPMorgan (JPM) to Outperform; Dip Creates 'Quality Opportunity'

(Updated - February 13, 2018 8:54 AM EST)

(updated to add analyst comments)

Keefe, Bruyette & Woods upgraded JPMorgan (NYSE: JPM) from Market Perform to Outperform with a price target of $127.00.

Analyst Brian Kleinhanzl said the sell-off in bank stocks has created an opportunity for bank stock investors to upgrade quality at a reasonable valuation.

He notes shares of JPM currently trade at 11.3 times their 2019 EPS estimate and they believe the risk/reward is favorable at this time.

"We believe the market is pricing in a scenario for bank stocks, and JPM, that is overly pessimistic given our expectations for the macroenvironment near term," the analsyt commented. "We admit macro risks have increased, but it is when risks are increasing that we would expect higher-quality bank franchises - such as JPM - to outperform."

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 $111.74 yesterday.

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