UPDATE: MKM Partners Initiates On JPMorgan Noting Cost-Control Initiatives

In a report published Wednesday, MKM Partners analyst David Trone initiated coverage on Universal Banks including a Buy rating on JPMorgan Chase & Co. JPM and $65.00 price target. MKM Partners wrote, “As the cliché goes, no good deed goes unpunished, instead of being appreciated in Washington for rescuing Washington Mutual and Bear Stearns from collapse, JP Morgan has been under consistent attack. The London Whale hurt no one except JP Morgan's own shareholders, yet regulators exploited the event to get an 11-figure handout from the company. Other regulatory attacks are too many to list here, and will likely continue for the foreseeable future.” Despite these anticipated regulatory attacks, Trone sees buying opportunity with the company's total net revenue down 15 percent over the past four years. The analyst remarked JPMorgan will likely progress towards a “new-normal” state and excess capital will likely pile up for this “punching bag” bank. MKM expects to see cost-control initiatives yielding a 14 percent reduction in 2014, with a similar increase in 2015. Trone forecasts a 25 percent EPS growth in 2014 and 14 percent growth in 2015. The analyst's $65.00 price target suggests a 20 percent upside. Shares of JPMorgan Chase closed at $53.72 on Tuesday and are currently up 1.2 percent at $54.38.