Vining Sparks Believes JP Morgan Chase (NYSE: JPM) Won’t Stop Here

By Austin Angelo

In a report released today, Marty Mosby from Vining Sparks assigned a Buy rating to JP Morgan Chase (NYSE: JPM), with a price target of $120. The company’s shares opened today at $112.67, close to its 52-week high of $112.85.

Mosby observed:

“JPM continues to demonstrate its strong underlying fundamentals as its profitability remains well above the other Money Center Banks. Therefore, we believe that its current P/TBV multiple of 209% should experience modest expansion towards 215% over the next 12 months, as capital markets activities eventually rebound, tax reform is realized, and short-term interest rates continue normalizing. This should enable JPM to improve its operating return on tangible common equity (ROTCE) by 3 full percentage points in 2018E. We believe this modest multiple expansion paired with mid-single digit TBV growth should allow JPM to outperform the S&P 500 in 2018E.”

According to TipRanks.com, Mosby is a top 25 analyst with an average return of 18.7% and a 81.6% success rate. Mosby covers the Financial sector, focusing on stocks such as Huntington Bancshares Inc, Goldman Sachs Group Inc, and Capital One Financial.

Currently, the analyst consensus on JP Morgan Chase is Moderate Buy and the average price target is $118.25, representing a 5.0% upside.

In a report issued on January 2, Barclays also reiterated a Buy rating on the stock with a $132 price target.

Based on JP Morgan Chase’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $28.69 billion and quarterly net profit of $6.67 billion. In comparison, last year the company earned revenue of $28.11 billion and had a net profit of $6.59 billion.

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