Market Overview

First Impression Of JPMorgan's 'Solid' Q3

Share:
First Impression Of JPMorgan's 'Solid' Q3
Related JPM
Don't Call The Trade War A Trade War, Says JPMorgan Chase CEO Jamie Dimon
Could Sector Rotation Be The Reason For AMD's Recent Weakness?
Let's Talk About General Electric's Downgrade (Seeking Alpha)

Reviewing JPMorgan Chase & Co. (NYSE: JPM)'s third-quarter results, Buckingham Research said the solid quarter supported its above-consensus earnings per share estimate for 2018.

The firm reiterated its Neutral rating and $100 price target for shares of JPMorgan.

Nothing To Complain About

Analyst James Mitchell noted that the company reported third-quarter revenues roughly 2 percent above his forecast, expenses slightly below forecast and credit costs in line. The company's earnings per share of $1.76 exceeded the $1.66 estimate.

The analyst termed the overall results as a clean beat.

Among the positives the analyst highlighted were card business finally showing earnings power after years of heavy investment, solid consumer growth and net interest margin expansion and higher provisioning for growth.

Long-Term Market Share Winner

Buckingham Research expects the consensus estimates for 2018 to go higher and closer to its estimate, given the continued strength in consumer banking and an inflection point in the U.S. cards after years of investment.

"Despite the good news, considering its premium returns (15% ROTCE) and valuation (1.8x 2017E TBV), we simply see less ROTCE improvement (and thus upside) in JPM shares vs. BUY rated peers," the firm said.

However, the firm said it sees the company as a long-term market share winner.

Related Links:

Big Bank Q3 Earnings Cheat Sheet: The Thing That Matters Most For Each Bank

Apple, JPMorgan Among Top Picks On New List From UBS

Latest Ratings for JPM

DateFirmActionFromTo
Sep 2018Bank of AmericaMaintainsBuyBuy
Jul 2018DZ BankUpgradesHoldBuy
Jul 2018BMO CapitalMaintainsMarket PerformMarket Perform

View More Analyst Ratings for JPM
View the Latest Analyst Ratings

Posted-In: Buckingham Research James MitchellAnalyst Color Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (JPM)

View Comments and Join the Discussion!

AT&T's Worst Trading Day In Years, Explained

With CEO Retiring, Hostess Brands' Turnaround Won't Be A Cakewalk