Nomura Securities analyst Steven Chubak has some quick thoughts on JPMorgan's (NYSE: JPM) 1Q miss on FICC, Mortgage and Credit.

Chuback comments, "JPM reported EPS of $1.28, in line with our $1.28 (which was the low estimate on the street), and below cons. of $1.40. We also note that the company indicated in its release that non-core items were “insignificant;” although, the firm did benefit from $398mn of PE gains in the quarter, and reported no litigation expense/accrual. We expect investors will be disappointed with this result, as reported revenues of $22.9bn came in light vs. the street ($24.4bn) on weaker-than-expected FICC and Mortgage banking (with the
company providing more cautious outlook on mortgage), and provision were higher ($850mn vs. street estimate of $687mn), with trends clearly indicating credit leverage is abating. As we have noted previously, we believe cons. numbers for 2014E are too high (as forecasts for fee income, provision, and preferred issuance appear too aggressive); we anticipate cons. downgrades following today’s result, with shares to underperform."

The firm maintained a Neutral rating and price target of $65.00

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Shares of JPMorgan closed at $57.40 yesterday.