Nomura Bumps Numbers on JPMorgan (JPM) Higher After Solid Q3 Results
Nomura Securities bumped its price target on Buy-rated JPMorgan (NYSE: JPM) from $46 to $47 following Friday's third quarter results.
"Strong results on the heels of big mortgage production, solid I-banking and trading and pretty good deposit and AUM/AUC growth," analyst Glenn Schorr comments. "Each business performed well (16% y/y rev growth), expenses remain in check, and capital built fast (B3T1C up 50 bps to 8.4%). Some reserves were released as “housing has turned” and that’s good if it continues. Still, repurchase demands rose 18% q/q, loans growth remains muted, JPM added $684mm in litigation reserves and regulatory guidance led to $825mm in incremental charge-offs. All in, we think it’s a good quarter for JPM and other banks should see similar benefits, but after a good 3Q run-up, stocks have pulled back some as investors see continued headwinds and limited earnings lift near term (we think JPM is better than most)."
The firm raised FY13E EPS from $4.65 to $ 4.96; FY14E EPS from $5.15 to $5.22
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 $41.62 yesterday, with a 52 week range of $28.28-$46.49.
"Strong results on the heels of big mortgage production, solid I-banking and trading and pretty good deposit and AUM/AUC growth," analyst Glenn Schorr comments. "Each business performed well (16% y/y rev growth), expenses remain in check, and capital built fast (B3T1C up 50 bps to 8.4%). Some reserves were released as “housing has turned” and that’s good if it continues. Still, repurchase demands rose 18% q/q, loans growth remains muted, JPM added $684mm in litigation reserves and regulatory guidance led to $825mm in incremental charge-offs. All in, we think it’s a good quarter for JPM and other banks should see similar benefits, but after a good 3Q run-up, stocks have pulled back some as investors see continued headwinds and limited earnings lift near term (we think JPM is better than most)."
The firm raised FY13E EPS from $4.65 to $ 4.96; FY14E EPS from $5.15 to $5.22
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 $41.62 yesterday, with a 52 week range of $28.28-$46.49.