CFRA Reiterates Buy Opinion On Shares Of Jpmorgan Chase & Co.

There were no big surprises at today’s Investor Day, but the event underscored JPM’s market leadership and the depth/breadth of its management. JPM raised its NII forecast by $1B to $91B in ’24, and interest rate trends do not appear to be a disruptor to underlying loan volume with rates higher for longer to a soft landing. We keep our $215 target on a forward P/E of 13.0x, above the five-year average at 12.3x. Higher valuation may be supported by the bank’s ability to capitalize on its lead market position, the size of its balance sheet, and its ability to innovate and drive future growth. Investor Day demonstrated how JPM is using technology, including AI and other applications, to drive product innovation, streamline work processes, and realize higher organic revenue outpacing expense growth. JPM was low key about a rebound in investment banking, which is a cornerstone of our Buy rating. We see investment banking fees up significantly in 2H 24. Jamie Dimon said there would be no buybacks at current prices.

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