CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our $215 target on a forward P/E of 13.0x, above the five-year historical average of 12.3x. Following a $0.31 earnings beat at $4.44 in Q1, we raise our 2024 EPS by $0.50 to $16.50 and 2025’s by $0.70 to $17.00. The Q1 revenue beat was 9% higher (to $41.9B), supporting our higher revenue forecast of $164B in 2024 and $166B in 2025. We think current rates and a healthy U.S. economy support higher loan volume and the impact on net interest income (NII), which JPM is guiding conservatively at $90B for 2024. In Q1, NII rose 11% Y/Y and total loans were +16% Y/Y, with deposit-related fees +2%. Consumer net revenue was +15%, with banking/wealth management +3%, home lending +65%, and card services/auto +8%. Commercial banking revenue was +13%, with middle markets +9%, corporate client banking +2%, and commercial real estate +42%. Investment banking fees were +21% Y/Y, with M&A advisory -21%, equity underwriting +51%, and debt underwriting +58%. We think investment banking fees will be much higher in 2024.