JPMorgan No Longer A Buy, MKM Says

In a report published Monday, analysts at MKM Partners downgraded

from Buy to Neutral. The price target was set to $65. The stock is currently trading at an all time high and appears fully valued at present. "[W]e simply cannot find justification for a sufficiently higher valuation to warrant continued buying action in JPM shares," the analysts said. On the other hand, the company's shares have risen 13 percent over the last three months, and the analysts expect momentum trade to drive the stock further up. However, the analysts believe that such valuation would be unjustified. MKM Partners expects JP Morgan Chase to deliver earnings growth in the high single-digits by May 2016. "Capital efficiency efforts are already being assumed, and regulatory dynamics can prevent upside surprise," the analysts added. According to the analysts, "JP Morgan is an outstanding company which ranks among the best in each of its major businesses, if not #1, in our view. On the other hand, its returns are shackled by historically unparalleled regulation, particularly on the capital side, where JPM has to be buffered against a once-in-a-100-year storm."