4 JPMorgan Chase Analysts On Q1 Print: NII And Deposits In Focus After Banking Crisis

Zinger Key Points
  • The remaining banking majors are unlikely to be able to beat JPMorgan Chase’s “standout” quarterly results,” one analyst says.
  • Taking into account the uncertainty heading into the quarter, the bank’s results are better than expected, another analyst adds.

Shares of JPMorgan Chase & Co JPM Friday climbed on first-quarter revenue and earnings beat.

Keefe, Bruyette & Woods On JPMorgan Chase

Analyst David Konrad maintained a Market Perform rating, while raising the price target from $131 to $155.

JPMorgan Chase’s “standout” quarterly results “will likely be hard to match by the rest of the group owing to the deposit inflows and lower than expected beta,” Konrad said in a note.

The bank reported a net interest income beat of 49 cents per share due to lower deposit costs, he added. “Following the quarter, we are increasing our 2023E by $2.43 to $15.30 and our 2024E by $1.15 to $13.90 due to higher NII expectations and higher near-term buybacks than previously forecasted,” the analyst further wrote.

Raymond James On JPMorgan Chase

Analyst David Feaster said in a note that JPMorgan Chase’s strong beat was fueled by “stronger NIM expansion/NII growth and better-than-expected core fee revenues’ and that its 2023 outlook for net interest income is “well above the current Visible Alpha consensus of $73.6 billion.”

“Importantly, its better-than-expected earnings generation resulted in a 23% ROTCE and enabled the company to grow capital faster than expected, where its 13.8% CET1 remains well above its 13% target and enabled the bank to resume stock buybacks this quarter (~$1.9 billion of net repurchases in 1Q23),” the analyst further wrote.

Check out other analyst stock ratings.

RBC Capital Markets On JPMorgan Chase

Analyst Gerard Cassidy reaffirmed an Outperform rating and price target of $140.

“Excluding noncore items, we calculate core EPS of $4.05, above of our $3.34 estimate and above $3.42 consensus which excludes DVA/CVA and the gain in an equity valuation in its Asset and Wealth Management business,” Cassidy said.

“Overall, relative to the uncertainty going into the quarter, JPM posted better-than-expected first-quarter results, driven by impressive net interest income growth and strong noninterest income,” the analyst stated. “Furthermore, its outlook for net interest income was better than expected, too,” he added.

Morgan Stanley On JPMorgan Chase

Analyst Betsy Graseck maintained a Neutral rating, while raising the price target from $153 to $157.

“Management noted that JPM retained $50B of deposit inflows related to March events,” Graseck said.

“We calculate an even higher number looking at their balance sheet, as average deposits decreased $65B q/q and EOP deposits increased $37B q/q, implying a $102B uplift in the second half of the quarter,” she added.

JMP Price Action: Shares of JPMorgan Chase had declined by 0.29% to $138.33 at the time of publishing Monday morning.

Read Next: Why Charles Schwab Shares Are Trading Higher Today

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Posted In: Analyst ColorEarningsEarnings BeatsNewsPrice TargetReiterationAnalyst RatingsTrading Ideasbank stocksbanksBetsy GraseckBruyette & WoodsDavid FeasterDavid KonradExpert IdeasGerard CassidyKeefeMorgan StanleyRaymond JamesRBC Capital Markets
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