SunTrust Downgraded J.P. Morgan with Concerns in 2014

In a report published Wednesday, SunTrust Robinson Humphrey analyst Eric Wasserstrom downgraded J.P. Morgan Chase (NYSE: JPM) from Buy to Neutral and lowered the price target from $62 to $59. Wasserstrom noted three factors that influenced the downgrade including, "(1) valuation, as our adjusted price target no longer satisfies the total return criteria required to substantiate a Buy rating; (2) while our current 2014-15 EPS estimates are inline to slightly higher than consensus, we have a negative near term bias; and (3) we don't foresee a revaluation catalyst currently."

SunTrust commented that J.P. Morgan maintains "strong earnings power" continues to gain share in core products from their strong position and J.P. Morgan's data continues to support this thesis. Despite this, the analyst noted that he expects a slight downside due to muted loan growth and lower capital return. SunTrust added that operating metrics may also be affected following J.P. Morgan's comments on the 2014 "year of transition" for several businesses.

J.P. Morgan closed at $57.24 on Wednesday.