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 $190 target, a forward P/E of 11.9x, below the three-year historic average at 12.3x. We raise our 2024 EPS view by $0.05 to $16.00 and set 2025’s at $16.30. Q4 2023 adjusted EPS was $3.97, a $0.36 earnings beat. A soft landing for the U.S. economy bodes well for loan growth, which offsets lower rates for net interest income (NII). In 2024, JPM is guiding for NII at $90B vs. $94B in 2023. In Q4 2023, NII rose 19% Y/Y, with an interest rate spread at 2.03% vs. 1.99% Y/Y (2.00% Q/Q) and total loans +20% Y/Y, while deposit-related fees were +3%. Consumer net revenue was +15%, with banking/wealth management +7%, home lending +50%, and card services and auto +14%. Commercial banking revenue was +29%, with middle markets +17% (gaining market share), corporate client banking +5%, and commercial real estate +41%. Investment banking fees were +13% Y/Y, with M&A advisory +2%, equity underwriting +30%, and debt underwriting +21%. Fixed income trading was +8% Y/Y, equity markets -8%, and security services +3%.