Sunday, August 19, 2012

JPM Started at Outperform: “A Port of Strength”

Evercore Partners analyst Andrew Marquardt initiated coverage of JPMorgan Chase (JPM) at Outperform late on Monday, calling the company a “port of strength amid ongoing uncertainty.”

“We’ve witnessed this in the recent past and expect JPM to again prove how it deserves to trade at a significant premium given its breadth of businesses, strong fundamentals, and management depth and credibility, in effectively navigating through a still challenging environment. Our 12-month price target of $46 implies 38% upside.”

JP Morgan’s biggest overhangs include real estate lending and its European exposure. But it has had greater success than many of its peers at deploying capital, which will continue to be a strength.

“Capital deployment remains a key driver for banks, particularly for JPM given its fortress balance sheet. We believe JPM will continue to lead the group in deploying capital, and this will increasingly be a differentiator among large-cap banks.”

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