Bank of America Sees CCB as Underappreciated Earnings Machine for J.P. Morgan Chase & Co.

In a report published Monday, Bank of America analyst Erika Najarian reiterated a Buy rating and $68.00 price target on

. In the report, Bank of America noted, “We are reiterating our Buy rating and $68 PO on JPM, after hosting investor meetings with Gordon Smith, CEO of Consumer & Community Banking (CCB). Despite comprising 44% of revenues and 40% of earnings, we believe CCB is an underappreciated and arguably undervalued piece of JPM, with JPM as a whole valued at 9.5x our ‘15E EPS – lower than its mega-cap peers and alternative subsectors in the S&P. Inevitably, we'll get investor response on this note that JPM is ‘over-owned.' However, active US manager data shows that JPM does not crack the top 20 in terms of best-owned financials within the S&P – despite its massive market cap. As such, if JPM continues to deliver on consensus expectations, we do believe there are incremental buyers for this name that can drive the multiple to a level that more appropriately reflects JPM's EPS power and return potential.” J.P. Morgan Chase & Co. closed on Friday at $59.91.