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Why Nomura Likes JP Morgan As An Investment


In a report published Wednesday, Nomura analyst Steven Chubak wrote that JPMorgan Chase & Co.'s (NYSE: JPM) commentary from its annual Investor Day on Tuesday was "quite constructive overall."

Chubak noted that JP Morgan identified key sources of incremental earnings upside from his modeled forecast. As a result, the analyst boosted his 2015 earnings per share estimate to $5.60 from $5.45, while 2016 earnings per share estimates were also boosted to $6.95 from a previous $6.75.

Chubak also added that JP Morgan published a dynamic earnings simulation, which suggested pro forma earnings potential of approximately $30 billion by 2017.

The raised estimates include the combined benefit of positive earnings per share revisions and a 50 basis point reduction in JP Morgan's CET1 target to 12 percent, which in aggregate yielded 100 basis points return on equity improvement to 14 percent.

Shares remain Buy rated with a price target raised to $69 from a previous $64.

Latest Ratings for JPM

Jan 2021Credit SuisseMaintainsOutperform
Jan 2021B of A SecuritiesUpgradesNeutralBuy
Jan 2021JefferiesUpgradesHoldBuy

View More Analyst Ratings for JPM
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Posted-In: Investor Day Nomura Steven ChubakAnalyst Color Price Target Analyst Ratings

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