UPDATE: Citigroup Reiterates Buy Rating, Raises PT on J.P. Morgan Chase

In a report published Monday, Citigroup reiterated its Buy rating on J.P. Morgan Chase & Co.

, and raised its price target from $43.00 to $48.00. Citigroup noted, “We update our 3Q estimates for better than expected trading and slightly higher mortgage banking revenues given stronger than expected gain on sale spreads. We raise our 3Q estimate from $1.38 to $1.41 (vs $1.17 cons). Our estimates assume a $900 mil reserve release (vs $2.1 bil last qtr), $500 mil in litigation charges (vs $300 mil last qtr), $900 mil (+16c) of hedging gains driven by TRUPs redemptions, and an estimated $300 mil DVA loss (-6c) from tighter JPM credit spreads as JPM 5-yr CDS has narrowed from ~140 bps to below 115 bps 3QTD. Our 2013 estimate remains unchanged at $5.15, but we lower our 2014 estimate from $5.50 to $5.10 on lower reserve releases. Given declining tail risks out of Europe, we raise our target from $43 to $48 to account for new lower equity risk premium (8%) across our coverage.” J.P. Morgan Chase & Co. closed on Friday at $41.57.