CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We think a wider risk premium for JPM shares can be supported by our view of a soft landing for the U.S. economy and lower rates that propel higher borrowing and risk taking. We raise our target by $15 to $190 on a forward P/E of 11.9x our 2024 earnings estimate, still below the three-year historic average of 12.3x. We keep our EPS estimates at $17.00 for 2023 and at $15.95 for 2024; our revenue forecast is $160B for 2023 and $159.5B for 2024. Loan growth remains critical, in our view, to net interest income (NII) and noninterest income in 2024, assuming economic growth and no recession. In Q3 2023, NII rose 30% Y/Y, with a rise in interest rate spread to 2.00% vs. 1.79% Y/Y (1.97% Q/Q) and total loans +17% Y/Y, while deposit-related fees were -4%. We look for investment banking to rebound, albeit more in 2H 2024. For JPM, the consumer is critical to revenue growth and realized +29% Y/Y in Q3 2023 with home lending +36%, and card services and auto +7%. We believe regulation remains a risk to future returns.