Opinions
Christine Poole
JP Morgan Chase & Co
JPM-N
PAST TOP PICK
Oct 21, 2024
Stock price when the opinion was issued
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Flagship US bank. Dimon has done a spectacular job. Pristine risk controls. Trading ~13x PE. Either #1 or #2 in all of its major businesses. Still growing and gaining market share. Core holding in any portfolio. Time is ripe to buy the best, you don't have to go down the food chain. Yield is 2.73%.
(Analysts’ price target is $266.16)Financial sector offers great promise, though it's reacted to current markets by pricing in a potential recession. Slower economic growth would not be good for banks. Absent a recession, with consumer confidence returning and unleashing M&A, the sector provides a good opportunity.
Don't value it on PE. Instead look at price to book, and it's expensive at 1.8x. Less expensive options include BAC and C.
Very efficient, with the lowest overhead ratio and highest ROE of all competitors. Very strong balance sheet, and it's very liquid. Should outperform peers in any type of economic environment. Stock's pulled back on tariff uncertainties about 17% from its highs, now trading ~12.5x forward PE. Increased dividend last week. Yield is 2.42%.
(Analysts’ price target is $257.89)
Her core US bank holding. Share price has gone up, but earnings have been growing. Company sees consumer doing OK in a pretty strong economy. Increasing loan provisions slightly. Net interest margin coming off a bit with interest rates being cut, but JPM sees that pivoting next year.
Very high ROE of 16%, very high operating efficiency. Very strong balance sheet. CEO prefers liquid cash on the balance sheet instead of bonds, which allowed them to buy First Republic. She's increased her weighting.