Opinions
Greg Newman
JP Morgan Chase & Co
JPM-N
HOLD
Jan 23, 2025
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)
Huge move up on Trump bump. Yield curve's in better shape than it's been for a long time. Net interest margins are better. The space will see lots more M&A. Will go higher if the space does. Trades at 13x for only 7% growth, not a good deal for a bank. He'd look at Citi instead.
Highest quality, Jamie Dimon, gold standard. Don't buy at these prices.